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M&M Financial Services banks on H2 recovery and strong valuations

In Q2FY24, net profit plummeted by 48 per cent Y-o-Y, while core profit before tax increased by 10 per cent Y-o-Y. This miss was largely due to higher provisions (up by 216 per cent Y-o-Y)

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3 min read Last Updated : Oct 30 2023 | 11:08 PM IST

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Even as the management guidance remains optimistic, Mahindra & Mahindra Financial Services faced a challenging second quarter (Q2) of 2023–24 (FY24), marked by net interest margin (NIM) compression and a significant increase in credit costs, coupled with higher operating expenditure.

However, the management anticipates a boost in festival season sales, robust rural cash flows, a stable market share, and a diverse product portfolio, which are expected to result in over 20 per cent growth for the year, with a rebound in the second half (H2).

The portfolio mix is projected to shift towards higher-yielding pre-owned vehicles and tractor financing. NIM

Topics : Mahindra & Mahindra Financial Services Mahindra & Mahindra financial services

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