Finance company Mahindra & Mahindra Financial Services announced Q3FY25 results Financial Highlights: AUM (Business assets): Rs 1,15,126 crore v/s Rs 97,048 crore, YoY 19%. While Market Share in Tractors was stable there was stiff competition in Passenger Vehicle, CV and Used vehicle business. Asset quality: GS2+GS3 @ 10.2%. Stage-3 @3.9%. Credit Cost: 0.0% v/s 1.2% (Q3FY24). Capital Adequacy healthy at 17.8%, Tier-1 Capital @ 15.1%. Provision coverage on Stage 3 loans prudent at 50.1%. Total liquidity buffer comfortable at Rs 9,322 crore. Operational Highlights: The collection efficiency remained stable at 95%, consistent with the same quarter of the previous year. Stage 3 assets stood at 3.9%, versus 4.0% as of December 31, 2023, while Stage 2 assets were at 6.3%, compared to 6.0% on the same date. During the third quarter of the year, the Company saw 5% YoY growth in disbursements for Wheels, while business assets grew by 18% YoY. Tractor financing segment disbursements grew by 24% YoY in Q3FY25. The non-vehicle finance portfolio grew by 27% over the past year. During the quarter, the SME segment delivered a Disbursement growth of 60% YoY (9MFY25 YoY growth: 60%), which drove asset book expansion by 20% on a YoY basis and was at Rs 5,464 crore as of December 31, 2024. Leasing disbursement grew 51% YoY in Q3FY25 & 36% YoY in FY25 YTD. Result PDF
Conference Call with Mahindra & Mahindra Financial Services Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Mahindra & Mahindra Financial Services announced Q2FY25 results Financial Highlights: Q2 FY25 PAT grows 57% YoY to Rs 369 crore v/s Rs 235 crore AUM (Business assets): Rs 1,12,454 crore v/s Rs 93,723 crore, YoY growth 20%. Disbursement: Rs 13,162 crore v/s Rs 13,315 crore, YoYgrowth -1%; YoY growth 2% for H1 FY25. Total Income: Rs 3,925 crore v/s Rs 3,240 crore, YoY growth 21%; PPOP: YoY growth 27%. Stable Market Share in Passenger Vehicles and Tractors. Asset quality: GS2+GS3 @ 10.3%. Stage-3 @3.8%. Credit Cost:2.3% v/s 2.4% (Q2FY24). Capital Adequacy healthy at 16.7% - Tier-1 Capital @ 14.8%. Provision coverage on Stage 3 loans prudent at 59.5%. Total liquidity buffer comfortable at Rs 8,912 crore Operations Highlights: As of Q2FY25, Business Assets stand at Rs 1,12,454 crore, reflecting a 20% YoY growth. As growth in various Wheels segments viz. passenger vehicles, commercial vehicles etc. slowed down, the disbursements for the first half of FY25 were Rs 25,903 crore, a relatively muted growth of 2% YoY. Disbursements for Q2FY25 were Rs 13,162 crore. The collection efficiency remained stable at 96%, consistent with the same quarter of the previous year. The Company continued its focus on enhancing underwriting standards and addressing early-stage delinquencies. Stage-3 assets were at 3.8%, an improvement over 4.3% a year ago. Sequentially, there has been some uptick (June end stage-3 assets at 3.6%). About 40% of this increase was contributed by Tractor segment. With Kharif cashflows, the Company expects normalization in Q3FY25. Stage-2 and Stage-3 assets put together were at 10.3%. Result PDF