The shares of Mahindra & Mahindra Financial Services gained 11.31% to reach an intraday high of ₹ 215.50 apiece on the National Stock Exchange (NSE), even though its consolidated net profit declined by 555.41% in September 2022. Its shares were trading at ₹ 215.15 apiece at 01:00 PM on Thursday.
The Mumbai-based non-banking finance company reported a 55 per cent decline in its net profit at ₹ 490.38 crores in the September quarter (Q2FY23) as against ₹ 1099 crore in September 2021. Its net sales were at ₹ 3010.95 crores in September 2022, up 2.81% from ₹ 2928.70 crore in September 2021.
The company reported healthy business growth in the September quarter, as its disbursements went up 83 percent year-on-year and 25% sequentially at ₹ 11,824 crores. Its net interest margin came in at 7.5 per cent, in line with the management’s guidance.
In October 2022, Mahindra Finance estimated the total disbursement of approximately ₹ 5,250 crores, delivering 97 per cent growth over October 2021. Further, the company said it holds an adequate liquidity buffer covering around 4 months’ funds requirement.
Motilal Oswal Financial Services said that the company had maintained its leadership position in the Tractor and Mahindra UV financing segment, which has been its strength. Further, its management has undertaken various strategic initiatives, which have the potential to script a credible transformation, if executed correctly.
The brokerage added that a strong liability franchise and deep moats in rural and the semi-urban customer segment positions the Mahindra Group company to reap the rewards of the hard work that is currently going into evolving this franchise
The company on October 31, 2022, it said that it raised ₹ 275 crores by issuing bonds on a private placement basis. The directors approved the allotment of 2,750 secured redeemable principal-protected non-convertible market-linked debentures. The face value of the bond is ₹ 10 lakh each aggregating to ₹ 275 crores.
Written by Simran Bafna
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