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MMFSL slumps after weak Q1 numbers

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Capital Market
Last Updated : Jul 25 2014 | 11:54 PM IST

Mahindra & Mahindra Financial Services tumbled 4.02% to Rs 239.85 at 11:34 IST on BSE after consolidated net profit declined 16% to Rs 170 crore on 18% growth in total income to Rs 1384 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced at the fag end of trading hours on Thursday, 24 July 2014. The stock had declined 2.51% to settle at Rs 249.90 on that day.

Meanwhile, the S&P BSE Sensex was down 109.68 points or 0.42% at 26,162.17.

On BSE, so far 2.58 lakh shares were traded in the counter as against average daily volume of 2.17 lakh shares in the past one quarter.

The stock hit a high of Rs 246.70 and low of Rs 236.60 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 212.60 on 23 August 2013.

The stock had underperformed the market over the past one month till 24 July 2014, declining 10.85% compared with the Sensex's 3.56% rise. The scrip had also underperformed the market in past one quarter, advancing 2% as against Sensex's 14.84% rise.

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

Mahindra & Mahindra Financial Services (MMFSL) said that Q1 June 2014 results were impacted by lower collection efficiency in April and May due to reduced number of effective working days. The announcement by the India Meteorological Department (IMD) of expected low monsoon also had negative impact, MMFSL said. The outlook for the year got a small boost with the month of June witnessing an improvement over the previous two months of the quarter, MMFSL added.

MMFSL's total assets under management (AUM) stood at Rs 34271 crore as on 30 June 2014 as against Rs 29539 crore as on 30 June 2013, a growth of 16%.

Mahindra & Mahindra Financial Services, part of the US $16.5 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 also offers fixed deposits and loans to SMEs.

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First Published: Jul 25 2014 | 11:33 AM IST

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