M&M Financial Services Q2 Profits Dip, Revenue Grows

30 Oct 2023 , 10:59 AM

M&M Financial Services observed a significant drop of over 9 % in its stock price on October 30 during early trading. The company reported a Q2 profit of Rs 235 crore for the fiscal year 2024, marking a substantial 47.5 % year-on-year decline primarily due to increased impairments related to financial instruments.

However, the revenue from operations for the same quarter experienced a positive trend, with a 24.1 % year-on-year increase, reaching Rs 3,212 crore, driven by asset portfolio growth. The net interest income also saw a notable rise of 9 % year-on-year, reaching Rs 1,674 crore.

The net interest margin for the quarter was reported at 6.5 %, impacted by higher borrowing rates and a shift in the portfolio mix in favor of customers with better credit quality. Despite these challenges, disbursements during Q2 grew by a substantial 13 % year-on-year, reaching Rs 13,315 crore.

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