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Informist, Tuesday, Jul 23, 2024

--M&M Fincl Apr-Jun net profit 5.13 bln rupees 

--Analysts saw M&M Fincl Apr-Jun net profit 5.12 bln rupees 

--M&M Fincl Apr-Jun net profit 5.13 bln rupees vs 3.53 bln 

--M&M Fincl Apr-Jun revenue 37.22 bln rupees vs 30.85 bln 

MUMBAI – Mahindra & Mahindra Financial Services reported a rise of 45% on year in net profit to 5.13 bln rupees for the June quarter, in line with Street estimates. On an annualised basis, the profit after tax was aided by a 23% on-year increase in the company's assets under management. The financial company, however, saw a fall of 17.1% in its bottom line on a sequential basis.

The non-banking finance company's assets under management rose to 1.06 trln rupees, from 867.32 bln rupees a year ago. Disbursements, however, rose only 5% on an annualised basis to 127.41 bln rupees.

"The plan is to grow the non-vehicle finance segment to 15% of the AUM over the medium term, while continuing to maintain its leadership position in the wheels business in emerging india," the company said in a press release.

In the reporting quarter, disbursements in the small and medium enterprises portfolio grew 68% on-year to 6.44 bln rupees. Meanwhile, passenger vehicles, which is the largest asset class for the company, rose a mere 3% on year to 52.37 bln rupees.

Total income for the company rose 20.3% on-year to 37.60 bln rupees. Meanwhile, total revenue from operations rose 20.7% to 37.22 bln rupees, and interest income also rose at a similar pace of 19% to 36.12 bln rupees.

The company's net interest income rose 15% on year in the reporting quarter to 19.32 bln rupees. Its capital adequacy ratio stood at 18.5% as of Jun 30. The non-bank lender has maintained a buffer liquidity chest of 82.16 bln rupees.

On the asset quality front, stage-3 assets of the company were at 3.6% as of Jun 30, lower than 3.4% a quarter ago. The provision coverage on stage-3 assets was at 59.8% as of Jun 30.

The collection efficiency remained steady at 94%, similar to the June quarter of the previous year. The credit cost for the non-banking finance company was up by 31% on a quarterly basis to 4.48 bln rupees, while it was down 15% on year.

The company released its quarterly earnings during market hours. Shares of the company closed 1.2% higher at 295.85 rupees on the National Stock Exchange.  End

Reported by Nishat Anjum

Edited by Rajeev Pai

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