Earnings Review
M&M Financial Jan-Mar PAT down 9% on year as expenses rise
This story was originally published at 19:15 IST on 22 April 2025
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--M&M Fincl net stage 3 asset ratio 1.84% Mar 31 vs 2.00% qtr ago
--M&M Fincl gross stage 3 asset ratio 3.69% Mar 31 vs 3.93% qtr ago
--M&M Fincl Jan-Mar net interest income INR 21.56 bln, up 9% YoY
--M&M Fincl Jan-Mar total income INR 42.45 bln, up 15% on year
--M&M Fincl assets under mgmt INR 1.20 tln as on Mar 31, up 17% on year
--M&M Fincl Jan-Mar disbursements INR 155.30 bln, up 2% on year
--M&M Fincl FY25 revenue INR 160.19 bln vs INR 134.07 bln year ago
--M&M Fincl FY25 net profit INR 23.45 bln vs INR 17.60 bln year ago
--M&M Fincl to pay INR 6.50 per share dividend for FY25
--M&M Fincl Jan-Mar revenue INR 42.41 bln vs INR 36.54 bln year ago
--M&M Fincl Jan-Mar net profit INR 5.63 bln vs INR 6.19 bln year ago
--Analysts saw M&M Fincl Jan-Mar net profit INR 5.77 bln
--M&M Fincl Jan-Mar net profit INR 5.63 bln
By Kshipra Petkar
MUMBAI – Mahindra and Mahindra Financial Services Ltd's net profit for the quarter ended March fell 9% on year due to a rise in expenses. The net profit of the non-bank lender stood at INR 5.63 billion, lower than analysts' expectation of INR 5.77 billion. Sequentially, the net profit was down over 37%. For 2024-25 (Apr-Mar), the company's net profit stood at INR 23.45 billion, higher than 17.60 billion a year ago.
Total expenses for the quarter ended March were up 24.14% on year at INR 34.8 billion. Sequentially, expenses rose 17.3%. The company's finance cost was up 20.4% on year at INR 20.8 billion.
The total income was up 15% on year at INR 42.45 billion in Jan-Mar. The net interest income of the company stood at INR 21.56 billion, up 9% year-on-year. The net interest margin for the quarter ended March moderated to 6.5% from 7.1% a year ago, as per an investor presentation.
Disbursements in the March quarter were up merely 2% on year at INR 155.30 billion. Business assets under management of the non-bank lender stood at INR 1.20 trillion as on Mar. 31.
Of all the segments, disbursements to small and medium enterprises grew 30% on year to INR 10.01 billion during the quarter. Disbursement under 'others', which include farm implements, gensets, personal and consumer loans, grew 37% on year to INR 4.01 billion and those under the tractor segment grew 11% on year to INR 12.48 billion. Disbursements under three-wheeler and pre-owned vehicle segments fell 5% and 11%, respectively.
In terms of asset quality, net stage 3 asset ratio improved to 1.84% as on Mar 31 from 2.00% a quarter ago and the gross stage 3 asset ratio stood at 3.69% as on Mar. 31, lower than 3.93% a quarter ago. In the latest quarter, credit costs stood at 1.4%, higher than 1.2% a year ago.
The capital adequacy ratio stood at 18.3% as on Mar 31, with the tier-I capital ratio at 15.2%. The provision coverage ratio of the company stood at 51.2%. The company's total liquidity buffer stood at INR 104.00 billion, the company said in a press release.
The board has recommended dividend of INR 6.50 per share. On Tuesday, shares of Mahindra and Mahindra Financial Services ended at INR 277.15 on the NSE, up 0.49% over Monday. End
Edited by Avishek Dutta
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