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Mahindra & Mahindra Financial Services Ltd (MMFSL) reported a 14 per cent increase in fourth quarter standalone net profit at ₹684 crore against ₹601 crore in the year ago quarter.
The non-banking finance company’s Board of Directors recommended a dividend of ₹6 per equity share of face value of₹2 each (that is 300 per cent) for the financial year ended 31st March 2023.
Net interest income (difference between revenue from operations and finance cost) was up 10 per cent year-on-year(yoy) at ₹1,660 crore (₹1,507 crore in the year ago quarter). Other income soared 161 per cent yoy to ₹63 crore (₹24 crore).
Total expenses rose 23 per cent yoy to ₹779 crore ( ₹633 crore0.
Disbursement were up about 50 per cent yoy at ₹13,778 crore in thequarter against ₹9,202 crore in the year-ago quarter.
A break-down of disbursements by asset class shows that loans for auto/Utility vehicles recorded the highest growth in percentage terms at 33 per cent, followed by cars (18 per cent), pre-owned vehicles (17 per cent), tractors and Commercial vehicles & Construction equipments (12 per cent each).
Assets under management
Assets under management grew 27 per cent yoy to₹82,770 crore as at March-end 2023.
As at March-end 2023, gross and net stage 3 assets position improved to 4.5 per cent (7.7 per cent as at March-end 2022) and 1.9 per cent (3.4 per cent), respectively.
By 2025, the company expects its AUM to double and maintain net interest margin at about 7.5 per cent.
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