Mahindra & Mahindra Financials is up 2% after a 6% fall in yesterday’s trade. The stock rebounded as investors took to bottom fishing after third quarter earnings were impacted on account of worsening asset quality and higher provisions impacted profitability.
Mahindra and Mahindra Financial Services' (MMFS) net profit was hit by surge in provisioning in the quarter ended December 31. Its standalone net profit fell 18 per cent to Rs 164 crore over last year and was significantly lower than Street expectations of Rs 242 crore.
Its loan provisioning and write-offs grew by 120 per cent year-on-year (up 42 per cent sequentially) to Rs 180 crore as cash-flows of borrowers in Southern India were impacted, resulting in delayed payments. Thus, the company had to classify such loans as NPAs.
In today’s trade thus far, the stock has hit a high of Rs 247.45 and a low of Rs 239. Around 2.5 million shares changed hands on the BSE and NSE till 1330 hrs.
Mahindra and Mahindra Financial Services' (MMFS) net profit was hit by surge in provisioning in the quarter ended December 31. Its standalone net profit fell 18 per cent to Rs 164 crore over last year and was significantly lower than Street expectations of Rs 242 crore.
Its loan provisioning and write-offs grew by 120 per cent year-on-year (up 42 per cent sequentially) to Rs 180 crore as cash-flows of borrowers in Southern India were impacted, resulting in delayed payments. Thus, the company had to classify such loans as NPAs.
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Consequently, its gross non-performing assets (NPA) ratio inched up to 4.7 per cent from 4.1 per cent in the September 2013 and December 2012 quarters.
In today’s trade thus far, the stock has hit a high of Rs 247.45 and a low of Rs 239. Around 2.5 million shares changed hands on the BSE and NSE till 1330 hrs.