The shares of one of India’s Leading NBFC companies declined by 14.5 percent to Rs 237.35 a share after the company reported weak September quarter financial results.
At 11:22 a.m., Mahindra and Mahindra Financial Services Ltd shares were trading at Rs 246.80 per share, down Rs 30.70 or 10.94 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 30,993 crore.
According to the Company’s exchange filing, the company’s consolidated net profit declined by 41 percent to Rs 287 crore in Q2FY24 as compared to Rs 492 crore in the corresponding quarter Q2FY23, while revenue improved remarkably by 28 percent to Rs 3,863 crore in the latest quarter as compared to Rs 3,029 crore in the same quarter last year.
In comparison to the previous quarter (Q1FY 23-24), operational revenue has increased by 6 percent from Rs 3,636 crore in Q1FY24 to Rs 3,863 crore in Q2FY24, Further net profit declined by 20 percent from Rs 362 crore to Rs 287 crore.
The Net Interest Income of the company is at Rs. 1,674 crore which has increased by 9 percent YoY. Net Interest Margin for the quarter at 6.5 percent was impacted by higher borrowing rates coupled with a change in portfolio mix in favor of better credit quality customers.
The company’s SME asset book is over Rs. 4,637 crore and has grown 26 percent YoY and increased 4.1 percent sequentially. The book contributes 5 percent of the Business Assets.
According to the recent shareholding pattern, the company promoters hold 52.16 percent of the company, Domestic institutional investors hold 25.84 percent and retail investors hold a 7.79 percent stake.
Mahindra & Mahindra Financial Services Limited (MMFSL), a part of the Mahindra Group, is an NBFC primarily engaged in the business of financing the purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment, and SME Financing.
Written by Omkar Chitnis
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