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M&M Financial rallies 10% post Q1 results

The stock hit high of Rs 401 is trading close to its record high of Rs 405 touched on October 2016.

SI Reporter  |  Mumbai 

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Mahindra & Mahindra (M&M) Financial Services surged 10% to Rs 401 on BSE on the back of heavy volumes after the company said it has had higher collection efficiency, lower repossessions and lower growth of non-performing assets (NPAs) in the June quarter (Q1FY18) compared to same period of the previous year, on account of improved sentiments at the rural

The company reported 45.7% year on year (Y-o-Y) drop in its consolidated net profit at Rs 47 crore in Q1FY18, due to higher provisioning for bad loans. It had reported profit of Rs 108 crore in the year ago quarter. Total income from operations during the quarter under review was up by 19.6% to Rs 1,875 crore on Y-o-Y basis.

The company made provisions of Rs 425 crore compared to Rs 361 crore in the previous quarter. The company made an additional provision of Rs 83 crore during the quarter on a prudential basis, it said in a press statement.

Gross non-performing assets (NPAs) in percentage terms stood at 10.5% versus 10.7% in Q1FY17.  Net NPA stood at 4.4% against 5.4% in previous year quarter. Gross NPA and Net NPA were 9% and 3.6%, respectively, in March 2017 quarter.

At 02:24 pm; the stock was up 9% to Rs 396 on BSE, as compared to 0.09% rise in S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 12.98 million shares changed hands on the BSE and NSE so far.

The stock is trading close to its record high of Rs 405 touched on October 4, 2016 during intra-day trade.

First Published: Tue, July 25 2017. 14:27 IST