M&M Financial Services has recently announced its June update, unveiling a 3% increase in disbursements, totaling ₹4,370 crore. This growth signifies the company’s strong performance and dedication to offering top-notch financial services to its clientele. In this piece, we will delve into the factors propelling this surge in disbursements and the ramifications for M&M Financial Services and the wider financial sector. Let’s scrutinize the latest developments in M&M Financial Services and Companies.
Disbursements and Performance Metrics
For the first quarter of the fiscal year 2025, disbursements amounted to approximately ₹12,730 crore, showcasing a robust 5% year-on-year growth trajectory. Mahindra & Mahindra Financial Services Ltd’s shares concluded at ₹302.35 on the BSE, declining by ₹4.25 or 1.39%.
June 2024 Performance
Mahindra & Mahindra Financial Services Ltd, a non-banking financial institution, reported commendable performance indicators for June 2024, demonstrating solid growth and sound asset quality amid economic challenges. Disbursements for June 2024 totaled around ₹4,370 crore, reflecting a modest 3% year-on-year increase. Enterprise assets in June 2024 reached roughly ₹1,06,200 crore, marking a significant 4% uptick from March 2024 and a substantial 22% surge compared to June 2023 levels.
Asset Quality and Liquidity Position
The company’s collection efficiency (CE) for June 2024 was 95%, slightly lower than the 96% recorded in June 2023. Similarly, the CE for the first quarter of FY25 stood at 94%, aligning with the previous year’s performance. Asset quality metrics showed improvement, with stage-3 assets at around 3.6% as of June 30, 2024, down from 4.3% a year earlier. Stage-2 assets were approximately 6.1%, lower than the 6.4% reported in June 2023. Maintaining a robust liquidity position, Mahindra & Mahindra Financial Services disclosed a liquidity reserve exceeding ₹8,000 crore on its balance sheet as of June 30, 2024.
Financial Highlights
In the fourth quarter, Mahindra & Mahindra Financial Services reported a net profit of ₹619 crore, marking a 9.5% year-on-year decline from ₹684 crore in the same period the previous year. The company’s net interest income for the quarter surged by 21% year-on-year to ₹3,706.10 crore. Loan growth remained strong, with total assets expanding by 24% year-on-year to ₹1.02 lakh crore. Disbursements during the quarter rose by 11% to ₹15,292 crore.
despite certain challenges, Mahindra & Mahindra Financial Services continues to exhibit resilience and growth in its operations, positioning itself as a key player in the financial services landscape.
