M&M Financial Services hits 52-week high on good Q4 results

The stock rallied 7% to Rs 295 on the NSE in early morning trade.

Mahindra & Mahindra Financial Services has moved higher to its 52-week high of Rs 295, up 7% on the National Stock Exchange (NSE) in early morning trade after the company's gross non-performing assets (NPA) as percentage to total assets declined to 8% in March 2016 quarter against 10.1% in December 2015 quarter. Net NPA declined to 3.2% from 4.6% during the quarter.

Through increased penetration and close follow up efforts the company has been able to increase overall collections and bring down NPA levels resulting in growth of profits, M&M Financial Services said in a statement.

The company has reported an 11% rise in standalone net profit at Rs 370 crore for quarter ended 31 March. It had posted a net profit of Rs 333 crore in the corresponding quarter of 2014-15.

Net interest income (operational revenues minus finance cost) increased by 13% to Rs 1,001 crore against Rs 883 crore in the same period from a year ago, it said in a BSE filing.

At 09:32 am, the stock up 4.6% to Rs 288 on the NSE as compared to 0.05% decline in the Nifty 50 index. A combined 1.99 million shares changed hands on the counter on the NSE and BSE so far.