M&M Financial Services close lower; extend losses for second straight day after Q4 PAT dips nearly 10% YoY
Upstox
2 min read • Updated: May 7, 2024, 6:33 PM
Summary
Shares of Mahindra & Mahindra Financial Services faced a 3% decline on Tuesday, reaching an intraday low of ₹251.4 apiece on the NSE. This drop follows the release of the company's Q4 results, which showed a nearly 10% year-on-year decrease in net profit. Despite this decline, the company reported a sequential increase in profit after tax for Q4FY24.
Non-banking finance company Mahindra & Mahindra Financial Services shares dropped more than 3% on Tuesday to an intraday low of ₹251.4 apiece on the NSE continuing its downward trend after the release of Q4 results last week.
Shares of the NBFC arm of the Mahindra and Mahindra group closed at ₹257.2 apiece, down 1.04%, on the NSE on Tuesday, extending the losses for the second straight day.
Mahindra and Mahindra Financial Services shares have been in focus after the company released the earnings report for the quarter and financial year ended March 31, 2024, on Saturday, May 4.
The decline in stock price has been seen after the company reported a nearly 10% year-on-year decline in net profit in Q4FY24.
The financial services provider reported a 9.5% drop in March quarter standalone net profit at ₹619 crore from ₹684.12 crore in the year-ago period. However, sequentially the profit after tax (PAT) in Q4FY24 increased compared to ₹552.79 crore in the December quarter.
The company reported a 21% YoY rise in its total income to ₹3,706 crore from ₹3,056.67 crore in Q4FY23. On a quarter-on-quarter (QoQ) basis the company’s revenue increased marginally by 6.17% against ₹3,490.42 crore in Q3FY24.
The company’s net interest income (NII) grew 14% YoY to ₹1,971 crore in the March quarter compared to 11% growth in total disbursements to ₹15,292 crore. The gross loan book of the company expanded 24% YoY to over ₹1.02 lakh crore.
M&M Financial Services declares dividend
The company also declared a dividend payout of 315% for its shareholders, which translates to a dividend of ₹6.3 per share of a face value of ₹2 each.
The dividend payout is subject to the approval at the forthcoming 34th Annual General Meeting (AGM), the company informed the bourses.
Mahindra & Mahindra Finance business update for April
Mahindra & Mahindra Financial Services in its business updates for the month of April, released on May 6, informed the stock exchanges that its overall disbursements stood at ₹3,930 crore, up 4% year-on-year.
The company said that its business assets stood at ₹1,04,000 crore, a 1.4% month-on-month growth of over March 2024. The company mentioned in the business update that its collection efficiency (CE) was at 89% for April 2024 compared to 92% for April 2023.