Mahindra & Mahindra Financial Services Ltd's Q2FY19 standalone net profit rises 132.5% yoy to Rs381.39cr: In-line with Estimates
The company’s standalone NII stood at Rs1,167cr, up 49.04% yoy and 8.35% qoq.
Oct 25, 2018 09:10 IST India Infoline Research Team
Mahindra & Mahindra Financial Services Ltd Q2FY19
Standalone Results Q2FY19: (Rs. in cr)
| Q2FY19 | YoY (%) | |
|---|---|---|
| NII | 1,167 | 49.0 |
| Net Profit (adjusted) | 381 | 132.5 |
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Mahindra & Mahindra Financial services Q2FY19 revenue improved 39% yoy to Rs2,148cr from Rs1,540cr. The NII for the quarter rose 49% yoy to Rs1,167cr. Net profit for the quarter was in-line with consensus estimates at Rs381cr, against Rs164cr yoy, indicating an increase of ~133% yoy.
- MMFS AUM growth for the quarter was 26% yoy to Rs59,473cr.
- Calculated NIM on AUM expanded 130bps yoy to 8.4%, driven largely by a higher yield on loans.
- Disbursement growth was 39% yoy to Rs21,194cr for the quarter.
- The gross stage 3 levels have gone down to 9.0% for the period ended September 30, 2018, from 13.1% during the corresponding period last year.
- The net stage 3 levels have gone down to 6.0% for the period ended September 30, 2018, from 8.8% yoy.
- Management stated that to mitigate rising cost of funds, the company will pass on 25bps to customers and some to the dealers too.
- Management guided for 3% RoA for FY19, also it expects improvement in credit costs in 2HFY19.
- Write-offs during the quarter – Rs141cr vs. Rs69cr in 1QFY19.
- As per management delienquency is likely to improve in the next few quarters, according to management.
- The company financed 4 lakh vehicles in the past six months.
- Management said that it is presently borrowing from every possible source. However, it is keeping a close watch on the liquidity situation.
Technical View:
Mahindra & Mahindra Financial Services Ltd ended at Rs. 401.35, up by 28.15 points or 7.54% from its previous closing of Rs. 373.20 on the BSE.
The scrip opened at Rs. 380 and touched a high and low of Rs. 404.90 and Rs. 380 respectively. A total of 58,10,841 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.
