Mahindra & Mahindra Financial Services (M&M Financial) rose 3.78% to Rs 171.50 after the company said it reported disbursement of over Rs 2,000 crore for the second month in a row in August 2021.
The total disbursement stood at about Rs 2,150 crore, recording a 57% Y-o-Y (year-on-year) growth, albeit on a lower base of August 2020, which was impacted by the first wave of COVID-19. The collection efficiency was reported at 97% for August 2021, further improving on 95% reported in July 2021. The collection efficiency in April 2021, May 2021 and June 2021 was 72%, 67%, 90% respectively.
As per the company's press release, "With opening of the economy and improved mobility, the company witnessed a meaningful reduction in the NPA contracts during the month as customer cash flows improved. We believe that this is a very encouraging sign. The company expects this downward trajectory to continue in September and in months to come. The company enjoyed a comfortable liquidity position on its Balance Sheet as on date."
The NBFC reported a consolidated net loss of Rs 1,573 crore in Q1 FY22 as against a net profit of Rs 432 crore in Q1 FY21. Total income during the quarter declined by 15.1% Y-o-Y to Rs 1,416 crore.
M&M Financial, part of the Mahindra Group, is a non-banking finance companies.
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