M&M Finance share price jumped over 5% in early trade on Wednesday after the company reported Q3 results ahead of estimates driven by improved net interest margins (NIMs), controlled opex and low provisions. M&M Finance shares rallied as much as 5.19% to ₹294.50 apiece on the BSE.
Mahindra & Mahindra Financial Services, the non-banking finance company, reported a 12% decline in its standalone net profit to ₹553 crore for the December quarter of FY24 from ₹629 crore in the same period last year.
M&M Finance’s net interest income (NII) in Q3FY24 rose 10% to ₹1,815 crore from ₹1,650 crore, YoY. NII growth was 8% QoQ. Net interest margin (NIM) stood at 6.8%, down from 7.4% YoY, but improved sequentially from 6.5%.
Disbursement during the quarter ended December 2023 rose 7% YoY to ₹15,436 crore. The collection efficiency for the quarter was recorded at 95%, similar to levels observed in Q3FY23 and marginal reduction over Q2FY24.
During the quarter, the company saw further improvement in its asset quality, with stage 3 assets at 4.0% (vs. 4.3% as of September 2023 and 5.9% as of December 2022). Stage 2 at around 6% (vs. 5.8% as of September 2023 and 8.4% as of December 2022), Mahindra & Mahindra Financial Services said in a release.
M&M Finance Q3 result was better than most analysts’ estimates leading to brokerages raising target price on the stock.
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