The shares of this leading Non-Banking Finance Company dropped by 7.9%, reaching ₹256.85 on the National Stock Exchange, after the company detected ₹150 crore fraud in the retail vehicle loans disbursements during the January-March quarter.
At 12:10 p.m, Mahindra & Mahindra Financial Services Ltd. shares were trading at ₹266.55 per share, down 4.41 percent from the previous close price on the stock exchange. The company has a market capitalization of ₹ 32,933 crore.
According to the company’s recent exchange filing, fraud was detected at one of the company’s branches in the North East towards the end of the fourth quarter of the financial year ending 31st March 2024. The fraud involved the forgery of KYC documents related to retail vehicle loans, resulting in the misappropriation of company funds.
The company anticipates that the financial impact of this fraud will not exceed ₹ 150 Crores.Due to these developments, approval of the audited standalone and consolidated financial results for the fourth quarter and financial year ending 31st March 2024, recommendation of dividend, AGM, and related matters initially scheduled for the Board meeting on 23rd April 2024, has postponed to a later date.
However, the company’s Audit Committee and the Board Meeting scheduled for 23rd April 2024 will proceed as planned to discuss other matters, including an increase in aggregate borrowing limits and raising funds through the issuance of Non-convertible debentures.
Looking into the financial performance of Mahindra & Mahindra Ltd., the company’s annual increase has increased by 24%, rising from ₹3,324 crore in Q3FY23 to ₹4,100 crore in Q3FY24. Concurrently, the net profit experienced a marginal decrease of 6%, dropping from ₹664 crore to ₹624 crore over the same period.
Mahindra & Mahindra Financial Services Limited (MMFSL), a part of the Mahindra Group,is a NBFC primarily engaged in the business of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment and SME Financing.
In terms of Mahindra & Mahindra Financial Services Ltd’s stock performance, there has been a 4.5% appreciation over the past 12 months, while a 2% decline was noted in the last 6 months.
Written by Omkar Chitnis
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