M&M Financial Services logs 3% growth in June disbursements

3 Jul 2024 , 10:59 AM

On Tuesday (July 2), non-bank lender Mahindra & Mahindra Financial Services Ltd published strong performance metrics for June 2024, noting consistent growth and good asset quality in the face of economic headwinds.

The company’s June 2024 disbursements totaled around ₹4,370 Crore, a 3% increase from the previous year. In Q1 of FY25, disbursements totaled roughly ₹12,730 Crore, representing a 5% year-on-year increase rate.

In June 2024, business assets totaled over ₹1,06,200 Crore, up 4% from March 2024 and 22% from June 2023.

The collection efficiency (CE) for June 2024 was 95%, slightly lower than 96% in June 2023. Similarly, CE for the first quarter of FY25 was anticipated to be 94%, which was consistent with the previous year.

Asset quality measures improved, with stage-3 assets assessed at 3.6% as of June 30, 2024, down from 4.3% the previous year. Stage-2 assets were around 6.1%, down from 6.4% recorded in June 2023.

As of June 30, 2024, Mahindra & Mahindra Financial Services had a healthy liquidity position with a balance sheet totaling over ₹8,000 Crore.

Mahindra & Mahindra Financial recorded a net profit of ₹619 Crore for the March 2024 quarter, a 9.5% decrease from ₹684 Crore the previous year.

The company’s net interest income for the quarter was ₹3,706.10 Crore, up by 21% YoY. Loan growth was strong, with total assets increasing by 24% YoY to ₹1.02 lakh Crore. Quarterly disbursements increased by 11% to ₹15,292 Crore.

At around 10.54 AM, M&M Financial Services was trading 1.29% lower at ₹298.55, against the previous close of ₹302.45 on NSE. The counter touched an intraday high and low of ₹303.25, and ₹288.60, respectively.

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