M&M Financial Services reports 14 per cent increase in Q4 net profit

Mahindra & Mahindra Financial Services Ltd (MMFSL) announced a 14 per cent increase in standalone net profit for the fourth quarter at ₹684 crore as against ₹601 crore in the year-ago quarter.

The board of directors of the non-banking finance company has recommended a dividend of $6 per equity share of par value of Rs 2 each (i.e. 300 per cent) for the financial year ending 31st March 2023.

Net interest income (the difference between revenue from operations and financing cost) increased by 10 per cent year-on-year (YoY) at ₹1,660 crore (1,507 crores in the year-ago quarter). Other revenue increased by 161 per cent year-on-year to Rs.63 crore (Rs.24 crore).

Total expenses increased by 23 per cent year-on-year to Rs. 779 crore (Rs. 633 crore 0.63 crore).

The exchange increased by around 50 per cent year-on-year at ₹13,778 crore in the quarter as against ₹9,202 crore in the year-ago quarter.

A breakdown of payments by asset class shows that auto/utility vehicle loans recorded the highest growth in percentage terms at 33 percent, followed by automobiles (18 percent), pre-owned vehicles (17 percent), and tractors, commercial vehicles, and construction equipment (12 percent each). ).

Properties under management supervision

Assets under management grew by 27 per cent year-on-year to reach INR 82,770 crore at the end of March 2023.

At the end of March 2023, the gross and net asset position in the third stage improved to 4.5 percent (7.7 percent at the end of March 2022) and 1.9 percent (3.4 percent), respectively.

By 2025, the company expects to double its assets under management and maintain net interest margin at around 7.5 percent.