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M&M Financial falls 7.95% in two days after weak Q3 outcome

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Capital Market
Last Updated : Jan 23 2014 | 11:58 PM IST

Mahindra & Mahindra Financial Services lost 3.11% to Rs 246.05 at 11:04 IST on BSE on high volume, with the stock extending Wednesday's fall triggered by the company reporting weak Q3 result.

Meanwhile, the S&P BSE Sensex was down 9.59 points or 0.04% at 21,328.08

The stock fell on high volume. On BSE, so far 10.93 lakh shares were traded in the counter as against average daily volume of 1.20 lakh shares in the past one quarter.

The stock hit a high of Rs 250.35 and low of Rs 232.35 so far during the day. The stock had hit a record high of Rs 355.90 on 23 December 2013. The stock had hit a 52-week low of Rs 179 on 4 March 2013.

The stock had underperformed the market over the past one month till 22 January 2014, falling 19.23% compared with the Sensex's 1.22% rise. The scrip had also underperformed the market in past one quarter, declining 5.86% as against Sensex's 2.27% rise.

The large-cap company has equity capital of Rs 113.75 crore. Face value per share is Rs 2.

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Shares of Mahindra & Mahindra Financial Services dropped 7.86% in two trading days from Rs 267.05 on 21 January 2014 after the company announced weak Q3 result during trading hours on Wednesday, 22 January 2014.

Mahindra & Mahindra Financial Services' consolidated net profit fell 15.7% to Rs 182.36 crore on 28.4% growth in total income to Rs 1363.21 crore in Q3 December 2013 over Q3 December 2012.

Mahindra & Mahindra Financial Services' total income increased by 31% to Rs 3825 crore in nine months ended 31 December 2013 over nine months ended 31 December 2012. Net profit rose 6% to Rs 618 crore during the nine months ended 31 December 2013 over nine months ended 31 December 2012.

Mahindra & Mahindra Financial Services' during the 9 months period ended 31 December 2013, registered a disbursement growth of 14% against the corresponding period last year, maintaining its leadership position for vehicles and tractors in the rural and semi urban markets.

Mahindra & Mahindra Financial Services currently has a network of 710 offices. Total assets under management rose 28% to Rs 32858 crore as on 31 December 2013 as against Rs 25645 crore as on 31 December 2012.

Mahindra & Mahindra Financial Services witnessed pressure from certain geographies and products resulting in higher provisions. The same is expected to improve in view of good harvest in due course. The company continued to broad base its consortium of lenders by bringing in new banks, mutual funds, insurance companies and trusts.

Mahindra & Mahindra Financial Services' subsidiary Mahindra Insurance Brokers (MIBL) registered 30% rise in income to Rs 78.7 crore in the 9 months period ended 31 December 2013 over the 9 months period ended 31 December 2012. Net profit rose 22% to Rs.29 crore during this period.

MIBL's income rose 20% to Rs 29.6 crore in Q3 December 2013 over Q3 December 2012. Net profit rose 26% to Rs 12.2 crore during this period.

Mahindra & Mahindra Financial Services' subsidiary Mahindra Rural Housing Finance (MRHFL) saw 39% rise in disbursement to Rs 391.7 crore during the 9 months period ended 31 December 2013 over the 9 months period ended 31 December 2012. MRHFL's income rose 51% to Rs 146.6 crore during the 9 months period ended 31 December 2013 over the 9 months period ended 31 December 2012. Net profit rose 26% to Rs 14.6 crore during this period.

MRHFL's disbursement rose 35% to Rs 140.8 crore in Q3 December 2013 over Q3 December 2012. MRHFL's income rose 46% to Rs 54.6 crore in Q3 December 2013 over Q3 December 2012. Net profit rose 1% to Rs 5.43 crore during this period.

Mahindra & Mahindra Financial Services, part of the US $16.7 billion Mahindra Group, is one of India's leading non-banking finance companies with a pan India presence. Focused on the rural and semi-urban sector, it provides finance for vehicles and tractors and has the largest network of branches amongst NBFC's operating in these areas.

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First Published: Jan 23 2014 | 11:10 AM IST

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