M&M Financial Services gains after Q4 FY22 disbursements grow 66% YoY

Mahindra & Mahindra (M&M) Financial Services rose 1.75% to Rs 168.20 after the company announced robust Q4 FY22 business update during market hours today, 4 April 2022.

In March 2022, the business continued its momentum with a disbursement of approximately Rs 3,832 crore, delivering a 66% YoY growth. The disbursement for FY2022 stood at approximately Rs 27,466 crore, registered a YoY growth of 45%. This has led to marginal growth in business assets over previous year.

The collection efficiency (CE) was at 109% for March 2022, similar as March 2021. The buoyancy in collections has led to significant sequential improvement in asset quality resulting in Stage 3 assets as of March 2022 being lower than as of March 2021. Similarly, Stage 2 assets have also seen meaningful improvement over 31 December 2021 level.

The company will bring the Net Stage 3 below 4% as on 31 March 2022 as committed. The company continued to enjoy a comfortable liquidity position on its balance sheet, with a liquidity chest of over 3 months.

Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is a non-banking finance company. The company is a vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits and is focused on the rural and semi-urban sector.

The NBFC said it reported a standalone net profit of Rs 894 crore in Q3 FY22 as against a net loss of Rs 274 crore in Q3 FY21. Total Income was at Rs 2,543 crore for the quarter, a decline of 1% YoY.

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