Mahindra Finance slips as Q4 PAT slides 10% YoY to Rs 619 cr

Mahindra & Mahindra Financial Services fell 2.66% to Rs 259.85 after the NBFC's standalone net profit declined 9.52% to Rs 618.99 crore in Q4 FY24 as against Rs 684.12 crore reported in Q4 FY23.

Total income increased by 21.25% year on year to Rs 3,706.10 crore in the quarter ended 31 March 2024.

Profit before tax was at Rs 831.54 crore in the March quarter, up 11.89% from Rs 943.73 crore posted in Q4 FY23.

Net interest income (NII) in Q4 FY24 stood at Rs 1,971 crore, up 14% YoY. Net interest margin (NIM) was at 7.1% in Q4 FY24 as compared to 7.4% for Q4 FY23.

Disbursement during the quarter was at Rs 15,292 crore, registering a growth of 11% YoY. The collection efficiency for the quarter is recorded at 98%, showing improvement over the levels observed in Q1, Q2, and Q3 FY24.

On full year basis, the companys net profit slipped 11.32% to Rs 1759.62 crore despite of 22.67% jump in total income to Rs 13,562.42 in FY24 over FY23.

Gross loan book was at Rs 1,02,597 crore as on 31 March 2024., up 24% on YoY basis

During financial year ended 31 March 2024, assets under management (AUM) jumped 24% YoY to Rs 1,02,597 crore.

With a focus on improving underwriting standards and addressing early bucket delinquency, the Company has seen continual improvement in asset quality. Stage-3 is at 3.4% (compared to 4% as of December 31, 2023, and 4.5% as of 31 March 2023), and Stage-2 is at 5% (compared to 6% both as of 31 December 2023, and 31 March 2023). Stage-2 and Stage-3 together is at 8.4% (compared to 10.4% as of 31 March 2023).

Capital adequacy ratio stood healthy at 18.9% (tier I capital at 16.4%). Provision coverage on Stage 3 loans remained prudent at 63.2%. Total liquidity buffer is better at Rs 7,950 crore.

Meanwhile, the companys board has recommended a dividend of Rs 6.30 for the financial year ended 31st March 2024.

Separately, Mahindra & Mahindra Financial Services has also announced its April 2024 business updates.

The NBFCs overall disbursement grew by 4% YoY to approximately Rs 3,930 crore in April 2024.

Business assets stood at approximately Rs 1,04,000 crore, grew around 1.4% over March 2024.

The collection efficiency (CE) was at 89% for April 2024 as against 92% for April 2023.

Stage-3 and Stage-2 assets remained rangebound compared to March 2024. The company said that it continued to maintain comfortable liquidity chest of over Rs 7,330 crore.

Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 10 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

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