M&M Finance posts Q1 PAT of Rs 240 cr

28 Jul 2022 , 03:35 PM

Total income rose 13.5% year on year to Rs 2,913.96 crore in the quarter ended 30 June 2022. The NBFC reported profit before tax (PBT) of Rs 318.44 crore in Q1 FY23 as against a pre-tax loss of Rs 2,141.35 crore in Q1 FY22. Total expenses declined 48.4% to Rs 2,198.06 crore while employee benefits expense rose 30.9% to Rs 353.21 crore in Q1 FY23 over Q1 FY22. On a standalone basis, the company reported a net profit of Rs 222.92 crore in Q1 FY23 as against net loss Rs 1,528.76 in Q1 FY22, which was impacted due to second wave of Covid-19 pandemic. Total Income rose 14.2% YoY to Rs 2,498.55 crore in Q1 FY23, aided by growth in asset book. The gross business assets were at Rs 67,693 crore as of 30 June 2022, as against Rs 64,961 crore as on 31 March 2022. There has been an increase of 4.2% sequentially and 6.5% on a YoY basis. The company said that it expects the uptick in disbursements shall continue enabling further growth in the business assets. In Q1 FY23, loan book increased sequentially by 4.2% to Rs 67,693 crore with improvement in disbursements. Disbursements was at Rs 9,472 crore was higher by 145% YoY. Net Interest Margin for the quarter was healthy at 8.2% and Net Interest Income stood at Rs 1,567 crore increased by 34% YoY, on the back of low-cost borrowings during the trailing 12-month period. As a prudent policy, the company continued to maintain 100% provisions on those loan contracts which have an ageing above 18 months. Consequently, the management overlays now stand at Rs 1,060 crores as on 30 June 2022. Iyer, vice chairman and managing director said, ?We have had a reasonable start to the year. The company has been able to report a satisfactory top line and bottom-line performance on the back of growth in asset book and control on asset quality. We look forward to this momentum to continue in subsequent quarters. The first quarter of last year was impacted due to second wave of Covid-19. As the year progressed, the asset quality improved and the performance normalized. To that end, the current quarter performance is not comparable to that of previous year.? Mahindra & Mahindra Financial Services, part of the Mahindra Group, is a non-banking finance company. The scrip closed 0.18% lower at Rs 198.40 on the BSE. Powered by Capital Market – Live News