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Informist, Tuesday, Oct. 22, 2024

 

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--M&M Fincl Jul-Sept net profit INR 3.69 bln 
--Analysts saw M&M Fincl Jul-Sept net profit INR 4.65 bln 
--M&M Fincl Jul-Sept net profit INR 3.69 bln vs INR 2.35 bln 
--M&M Fincl Jul-Sept revenue INR 38.97 bln vs INR 32.12 bln year ago 
--M&M Fincl Apr-Sept net profit INR 8.82 bln vs INR 5.88 bln year ago 
--M&M Fincl Apr-Sept revenue INR 76.20 bln vs INR 62.97 bln year ago 
--M&M Financial AUM at INR 1.12 tln as on Sept 30, up 20% YoY 
--M&M Fincl standalone gross NPA ratio at 3.83% Sept 30 vs 3.56% qtr ago 
--M&M Fincl standalone net NPA ratio at 1.59% Sept 30 vs 1.46% qtr ago 
--M&M Fincl standalone provision coverage ratio at 59.48% as on Sept 30 

 

By Sachi Pandey

 

MUMBAI – Mahindra & Mahindra Financial Services Ltd. reported a 57.1% year-on-year jump in net profit for the September quarter to INR 3.69 billion, which fell short of Street expectations of INR 4.65 billion. The company's profit after tax was driven by 20% growth in assets under management and improved total revenue from operations.

 

Total revenue from operations climbed 21.3% year on year to INR 38.97 billion. However, on a sequential basis, the total revenue was up only 4.7%. Net interest income for the reporting quarter increased 19% on year to INR 19.91 billion.

Assets under management rose 20% year on year to INR 1.12 trillion. Sequentially, this represented a 5.7% increase from INR 1.06 trillion in the previous quarter.

 

Meanwhile, disbursements for Jul-Sept slipped slightly by 1% year on year to INR 131.62 billion.

 

"During the quarter, the disbursements for the Wheels business was muted. This was on the back of a muted performance of the vehicle industry," the non-bank lender said in a press release on Tuesday. The company announced its earnings after market hours, with its shares having closed 2.6% lower at INR 281.65 on the National Stock Exchange.

 

Disbursements for passenger vehicles, the non-banking financial company's largest asset class, were 3% lower in Jul-Sept compared to last year, amounting to INR 53.15 billion. The commercial vehicle and construction equipment segment, the second largest, witnessed an even larger decline of 10% in disbursals. However, small and medium enterprises saw robust 52% year-on-year growth to INR 6.59 billion.

 

On the asset quality front, the company saw an up-tick in its stage-3 assets, which rose to 3.83% as on Sept. 30 from 3.56% a quarter ago, but down from 4.29% last year. "Sequentially, there has been some uptick. About 40% of this increase was contributed by Tractor segment. With Kharif cashflows, the Company expects normalisation in Q3 FY25 (Oct-Dec)," the lender said. Its provision coverage on stage-3 assets stood at 59.48% as on Sept. 30.

 

Credit costs rose 12% in Jul-Sept to INR 7.03 billion, reflecting the increased provisioning.  End

 

Edited by Akul Nishant Akhoury and Ashish Shirke

 

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