Mahindra Finance rises as disbursements grow 9% YoY in Mar'24

Mahindra & Mahindra Financial Services rallied 3.10% to Rs 295.75 after the company recorded an overall disbursement of approximately to Rs 6,100 crore in March 2024, delivering 9% year on year (YoY) growth.

For Q4 FY24 disbursements grew by 11% YoY to approximately Rs 15,300 crore.

The collection efficiency (CE) for March 2024 reduced to 101% as compared to 105% registered in March 2023. During the quarter, CE stood at 98% from 99% recorded in the same period a year ago.

On full year basis, the disbursement increased by 13% YoY to around Rs 56,200 crore in FY24. CE was constant at 96% for FY24 as compared to FY23.

 

Healthy disbursement trends during FY24 have led to business assets at around Rs 1,02,400 crore as at 31 March 2024, a growth of about 24% over 31 March 2023 and approximately 6% over 31 December 2023.

As at 31 March 2024, Stage 3 is estimated at about 3.3% as against 4% as on 31 December 2023 and 4.5% posted as at 31 March 2023 and Stage-2 is estimated at around 5.1% from 6% both as at 31 December 2023 and 31 March 2023.

The company continued to enjoy a comfortable liquidity position on its balance sheet, with a liquidity chest of over Rs 7,650 crore, the NBFC stated.

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 8.4 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.

The NBFCs net profit fell 12.11% to Rs 552.79 crore in Q3 FY24 as against Rs 628.95 crore posted in Q3 FY23. However, total income increased 20.71% YoY to Rs 3,490.42 crore in the quarter ended 31 December 2023.

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