Mahindra & Mahindra Financial Ltd. announced its June quarter results on Tuesday, July 22. The stock recovered from the lows of the day in response to results.The company’s Net Interest Income increased by 19.7% from last year to ₹2,267 crore. On a sequential basis, the core income grew by 5.4%.
Net profit for the period increased by 3.2% from the same quarter last year to ₹530 crore, but declined 6% from the March quarter. Elevated provisions led to profitability for the company being impacted.
Provisions for the quarter increased by 44.3% from the previous quarter to ₹660 crore from ₹457 crore in March, while its Pre-Provisioning Operating Profit (PPoP) increased 19.3% year-on-year to ₹1,353 crore.
Stressed assets witnessed some increase from last year, with Gross Stage 3 assets estimated to be between 3.8% to 3.9%, compared to estimates of 3.7%.M&M Financial had already reported its business update for the June quarter, with disbursements increasing 1% from last year, compared to a 5% growth it saw during the same quarter last year.
Net profit for the period increased by 3.2% from the same quarter last year to ₹530 crore, but declined 6% from the March quarter. Elevated provisions led to profitability for the company being impacted.
Provisions for the quarter increased by 44.3% from the previous quarter to ₹660 crore from ₹457 crore in March, while its Pre-Provisioning Operating Profit (PPoP) increased 19.3% year-on-year to ₹1,353 crore.
Stressed assets witnessed some increase from last year, with Gross Stage 3 assets estimated to be between 3.8% to 3.9%, compared to estimates of 3.7%.M&M Financial had already reported its business update for the June quarter, with disbursements increasing 1% from last year, compared to a 5% growth it saw during the same quarter last year.
Collection efficiency also declined sequentially to 95% from 97% in March.
Assets Under Management (AUM) had increased by 14.5% year-on-year to ₹1.21 lakh crore.
Shares of Mahindra & Mahindra Financial are trading 1.2% higher at ₹266.05. The stock has remained flat this year so far, gaining only 3%.
