Home / Companies / Company Results /  M&M Financial Services Q1 results: Reports PAT of 223 cr, disbursements rise 145%

Mahindra & Mahindra Financial Services registered a standalone net profit of 223 crore for the quarter ending June 30, 2022 (Q1FY23) compared a loss of 1,529 crore in the same period last year. Q1 PAT, however, declined from a net profit of 600.80 crore in the preceding quarter. Net interest income (NII) was at 1,567 crore increased by 34% yoy. on the back of low-cost borrowings during the trailing 12-month period.

In the quarter under review, net interest margins were healthy at 8.2%. Further, in Q1FY23, the loan book increased sequentially by 4.2% to 67,693 crore with an improvement in disbursements. Disbursements at 9,472 crore were higher by 145% yoy.

Meanwhile, Gross Stage 3 marginally increased from 7.7% in March to 8.0% in June despite seasonal volatility, powered by focused collection initiatives and timely repossessions. This is the lowest GS3 level witnessed during the first quarter under IND-AS reporting.

Iyer, Vice Chairman, and Managing Director highlighted, “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."

Also, the company's Capital Adequacy stands at a healthy 25.9%. Provision coverage on Stage 3 loans was maintained at 58.1%.

As of June 30, 2022, M&M Finance carried a total liquidity buffer of approximately 8,700 crore - covering 3 months’ obligations.

On a consolidated basis, the company's total income increased by 14% to 2,914 crore in Q1FY23 as against 2,567 crore during the corresponding quarter last year. The PAT stood at 240 crore in Q1FY23 as against a loss of 1,573 crore during the corresponding quarter last year.

On BSE, M&M Finance shares were trading at 199.55 apiece marginally up at around 2.56 pm. Its market cap is around 24,655 crore.

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