The shares of Mahindra & Mahindra Financial Services Ltd. falls by 5% at ₹163.00 per share against the previous close at ₹169.00 per share, in today’s early trade on NSE. The company reported a consolidated net profit of ₹992 crore in the third quarter ended December 2021 (Q3FY22) as against the loss of ₹223 crore in the same quarter of FY21.
Subsequently, net profit fell by 10% from ₹1,103 crore in the second quarter ended September 2021 (Q2FY21). On a standalone basis, net profit stood at ₹894 crore in Q3FY22 as against a net loss of ₹274 crore in Q3Fy21. Sequentially, its net profit fell by 13% from ₹1,023 crore in Q2FY22.
Its standalone net interest income (NII) increases by 14% year on year basis to ₹1,580 crore in Q3FY22 from ₹1,384 crore. Sequentially, NII rose 6% from ₹1,493 crore in Q2FY22, according to an analyst presentation.
On provisions and write-offs, the company had a benefit of ₹148 crore in Q3FY22 as against the huge amount of Rs 1,387 crore it set aside in Q3FY21. Sequentially, its benefit declined by 60 per cent from ₹367 crore in Q2FY22. Its gross non-performing assets (NPAs) stood at 11.3% and net NPAs stood at 5.63% at end of December 2021.
Mahindra Finance in a statement clarified that the third quarter witnessed some normalcy coming back. Mobility enhanced further and there was better visibility on cash flows–both farm & infra and demand for vehicles.
For the Q3FY22, total disbursement stood at ₹8,032 Crore, a 28% growth YoY (and a 24% growth sequentially). Also, collection efficiency during the quarter stood at 95%, as compared to Q3 of last year at 88%.
The gross business assets were at ₹63,944 crore as of December 2021, as against ₹66,525 crore a year ago. Sequentially, there has been a marginal rise, it added. Its capital adequacy stood at 26.8% with tier-I of 23.3% at end of December 2021.