M&M Finance Q2 FY25 results: Net profit rises 57% to Rs 369 crore

The net profit of Mahindra & Mahindra Financial Services (M&M Finance) rose by 57 per cent year-on-year (Y-o-Y) to Rs 369 crore in the July-September quarter of FY25 (Q2 FY25), up from Rs 235 crore in the year-ago period.

The total income of the company rose by 19 per cent to Rs 1,991 crore, while the net interest income (NII) of the non-banking financial company (NBFC) increased by 19 per cent Y-o-Y to Rs 1,963 crore from Rs 1,646 crore.

The NII margin of the company remained flat at 6.5 per cent. The cost of funds rose marginally to 6.5 per cent in Q2 FY25 from 6.4 per cent last year.

During the quarter under review, the company’s disbursements slipped by 1 per cent Y-o-Y to Rs 13,162 crore. The loan book of the firm rose by 20 per cent to Rs 1.12 trillion. Growth in various Wheels segments—such as passenger vehicles and commercial vehicles—slowed down. Disbursements for the first half of FY25 were Rs 25,903 crore, reflecting a 2 per cent growth from the year-ago period.

The gross non-performing assets (GNPA) of the company as of September 30, 2024, rose to 3.83 per cent from 3.56 per cent as of June 30, 2024, while net NPA increased to 1.59 per cent from 1.46 per cent.

“About 40 per cent of this increase was contributed by the tractor segment. With Kharif cashflows, the company expects normalisation in Q3 FY25. Stage-2 and Stage-3 assets combined stood at 10.3 per cent,” the company said in its press release.

The credit cost of the company decreased to 2.3 per cent from 2.4 per cent in Q2 FY24.

The collection efficiency of M&M Finance remained stable at 96 per cent, consistent with the same quarter of the previous year.