Mahindra & Mahindra Financial Services Sees 4% Stock Drop Despite Strong Q2 Growth

4 Oct 2023 , 01:36 PM

Mahindra & Mahindra Financial Services’ shares declined by around 4% in morning trade on October 4 following the Q2 business update. The company reported a healthy growth in disbursements, reaching Rs 4,500 crore in September, marking an 11% YoY growth.

Q2 disbursements for the current fiscal amounted to Rs 13,300 crore, reflecting a 12.6% YoY growth. H1 FY2024 disbursement stood at approximately Rs 25,500 crores, a 20% YoY growth.

Business assets increased to around Rs 93,600 crore, showing a growth of 13% over March 2023 and 8% over June 2023, attributed to healthy disbursement trends and pre-festival dealer advance. Collection efficiency (CE) for September 2023 was at 97%, slightly improving from 96% in August 2023, while September 2022 recorded a CE of 98%.

Stage-3 assets ratio inched up to 4.4% from 4.3% as at June 2023, while stage-2 declined to 5.8% from 6.4% as at June 2023. The company maintains a comfortable liquidity position on its balance sheet with a liquidity chest of over 2.5 months.

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