M&M Finance Q1 net profit up by 45% y-o-y

24 Jul 2024 , 02:39 PM

Mahindra & Mahindra Financial Services Ltd. (MMFS) announced a net profit of ₹513 Crore for the April to June quarter of the financial year 2024-25, up 45% YoY from ₹352.7 Crore in the previous year period. The earnings number was 1.3% lower than market poll of ₹519.7 Crore.

The Mumbai-based NBFC’s net interest income (NII) increased by 16% year on year to ₹1,894 Crore from ₹1,634 Crore in the same quarter last year. Core net interest income increased by 15% to Rs 1,932 Crore, while the interest margin decreased to 6.6% from 7.1% in the previous quarter.

Mahindra Finance’s balance sheet is robust, with a capital adequacy ratio of 18.5% for the period under review. The corporation had a liquidity pool of ₹8,216 Crore.

Business Assets increased by 23% year on year to ₹1,06,339 Crore during the quarter. Disbursements reached ₹12,741 Crore, representing a mild 5% YoY rise.

The collection efficiency remained consistent at 94%, as it had in the same quarter last year. The asset quality remained consistent as the company maintained to focus on underwriting criteria and resolving early bucket delinquency, according to a filing.

Its credit costs fell to ₹448 Crore from ₹526 Crore the previous year, helping it boost profits.

At around 2.33 PM, Mahindra & Mahindra Financial Services was trading 0.90% higher at ₹298.50, against the previous close of ₹295.85 on NSE. The counter touched an intraday high and low of ₹305.55, and ₹291.10, respectively.

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