Mahindra & Mahindra Financial Services Announced Q1FY23 Result :
- Revenue at Rs. 2,499 crores (14% YoY growth) and PAT at Rs. 223 Crore during the quarter
- Strong Disbursement growth 145% YoY; sequential growth of 3%
- Loan Book - Rs. 67,693 Crore; YoY, growth of 6%; sequential growth of 4%
- Gross Stage 3 at 8.0%; Net Stage 3 at 3.5%
- Stage 2 declined sequentially from 14.3% to 11.7%
- Total Income was at Rs. 2,499 Crore for the quarter, an increase of 14% YoY aided by growth in asset book
- Loan Book increased sequentially by 4.2% to Rs. 67,693 Crore with improvement in disbursements. Disbursements at Rs. 9,472 crores was higher by 145% YoY
- Net Interest Margins for the quarter were healthy at 8.2%; Net Interest Income at Rs. 1,567 Crore increased by 34% YoY, on the back of low-cost borrowings during the trailing 12-month period
- Profit after Tax (PAT) was at Rs. 223 Crore for the quarter as against Loss after Tax of Rs. 1,529 Crore during Q1 FY22, which was impacted due to second wave of Covid-19 pandemic.
- Gross Stage 3 marginally increased from 7.7% in March to 8.0% in June despite seasonal volatility, powered by focused collection initiatives and timely repossessions. This is the lowest GS3 level witnessed during the first quarter under IND-AS reporting.
- The Company’s Capital Adequacy stands at a healthy 25.9%. Provision coverage on Stage 3 loans maintained at 58.1%.
- As of June end, the Company carried a total liquidity buffer of approximately Rs. 8,700 Crore - covering 3 months’ obligations.
- The Total Income increased by 14% at Rs. 2,914 Crore during the quarter ended June 30, 2022, as against Rs. 2,567 Crore during the corresponding quarter last year. The PAT stood at Rs. 240 Crore during the quarter ended June 30, 2022, as against Loss after Tax of Rs. 1,573 Crore during the corresponding quarter last year.
Commenting on the Q1 performance, Mr. Iyer, Vice Chairman and Managing Director highlighted “We have had a reasonable start to the year. The company has been able to report a satisfactory top line and bottom-line performance on the back of growth in asset book and control on asset quality. We look forward to this momentum to continue in subsequent quarters. The first quarter of last year was impacted due to second wave of Covid-19. As the year progressed, the asset quality improved and the performance normalized. To that end, the current quarter performance is not comparable to that of previous year.”