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Mahindra Finance gains as Q1 PAT jumps 45% YoY to Rs 513 cr

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Last Updated : Jul 23 2024 | 4:50 PM IST

Mahindra & Mahindra Financial Services added 1.16% to Rs 295.90 after the NBFC's standalone net profit jumped 45% to Rs 513 crore in Q1 FY25 as against Rs 353 crore reported in Q1 FY24.

Total income increased by 20% year on year to Rs 3,760 crore in the quarter ended 30 June 2024.

Profit before tax was at Rs 686.38 crore during the quarter, up 44.94% from Rs 473.54 crore posted in Q1 FY24.

Net interest income (NII) in Q1 FY25 stood at Rs 1,932 crore, up 15% YoY. Net interest margin (NIM) was at 6.6% in Q1 FY25 as compared with 6.8% for Q1 FY24.

Disbursement during the quarter was at Rs 12,741 crore, registering a growth of 5% YoY. The collection efficiency remained steady at 94%, similar to the same quarter of the previous year.

Gross loan book was at Rs 1,06,339 crore as on 30 June 2024, up 22.60% on YoY basis.

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During quarter ended 30 June 2024, assets under management (AUM) jumped 23% YoY to Rs 1,06,339 crore.

With a focus on underwriting standards and addressing early bucket delinquency, the asset quality remained stable. Stage-2 and stage-3 together remained below 10%. The stage 3 assets at 3.6% (versus 3.4% as of 31 March 2024) are within the defined risk guardrails for the company.

Capital adequacy ratio stood healthy at 18.5% (tier I capital at 16.4%). Provision coverage on Stage 3 loans remained prudent at 59.8%. Total liquidity buffer is better at Rs 8,216 crore.

The collection efficiency remained steady at 94%, similar to the same quarter of the previous year.

On consolidated basis, the companys net profit was at Rs 497.66 crore in Q1 FY25, registering a growth of 38.74% as against with Rs 358.69 crore posted in Q1 FY24. Revenue from operations stood at Rs 43.15 crore, up 20.42% year on year.

Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 10 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

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First Published: Jul 23 2024 | 4:14 PM IST

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