Mahindra & Mahindra Financial Services (MMFSL) has cut their FY20 credit growth guidance to 15 percent from 20 percent at the Kotak conference on Tuesday. Ramesh Iyer, vice chairman and managing director, MMFSL shared his views and outlook.
Growth during Q1 or Q2 FY20 is never going to be at the same rate of Q4FY20 because rural doesn’t respond so positively in the first two quarters and that is why the company has predicted the growth rate would be somewhere around 12-15 percent, said Iyer.
"We are seeing the pick-up in the auto space is not as aggressive and an enabler we want to be cautious about where the growth could be,” he said.
“We would rather aim a higher number (than 15 percent for FY20) because once the government is stable and post the monsoon, we do expect the festival season will have a decent demand and then BS-VI coming in. How it is going to help liquidate the stock of the current inventory levels at dealerships, all of this I personally think will show growth in the retail numbers and that could help us. I don’t think we had said (at Kotak conference) it is 20 percent but we have definitely said that we are looking at 15 percent.”