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Mahindra & Mahindra Financial Services reported a 300 per cent surge in its standalone net profit to ₹600.8 crore in the fourth quarter of last fiscal from ₹149.97 crore a year ago.
It was, however, 32.8 per cent lower on a sequential basis compared with the net profit of ₹893.81 crore in the third quarter of 2021-22.
Its standalone net profit for 2021-22 also shot up by 195 per cent to ₹988.75 crore against ₹335.15 crore in 2020-21.
For the quarter ended March 31, 2022, total income declined 6.5 per cent to ₹2,466.36 crore from ₹2,637.51 crore a year ago.
“The decline was primarily due to provision for excess interest refund amounting to ₹142 crore in compliance with RBI directions. The company continues to maintain a healthy margin on existing book,” Mahindra Finance said in a statement.
Net interest income for the fourth quarter of 2021-22 declined one per cent year-on-year to ₹1,531 crore.
Net interest margin remained stable at 7.6 per cent during the year.
Disbursements, collection efficiency improve
Disbursements grew 54 per cent year-on-year to ₹9,202 crore for the fourth quarter of 2021-22 from ₹5,970 crore in the same quarter in 2020-21.
Gross Stage 3 declined to 7.66 per cent as on March 31, 2022 against 11.3 per cent as on December 31, 2021 and 8.96 per cent as on March 31, 2021.
“The business environment has returned to normalcy and disbursement trends indicate rural demand and volumes being back to pre-Covid levels,” it said, adding that collection efficiency during the quarter stood at 100 per cent, with March clocking 109 per cent.
The Board of Mahindra Finance has recommended a dividend of ₹3.60 per share on equity share of ₹2 each.
Business update for April
In its business update for April 2022, the NBFC said it estimates total disbursements at about ₹2,750 crore, delivering a 109 per cent growth over April 2021, primarily due to a much lower base last year.
Collection efficiency (CE) was at 90 per cent for April 2022, which was a significant improvement over April 2021 CE which stood at 72 per cent, and was also higher than historical average for the month of April.
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