M&M Finance’s Q4 net profit decreased by 9.5% year on year, with a dividend of ₹6.30 per share issued.
credit : livemint.com 
On May 4, Mahindra Finance announced a 21% YoY rise in total revenues to ₹3,706 crores for the quarter ending March 31, 2024. However, the Profit After Tax (PAT) witnessed a minor dip by 10% YoY, settling at ₹619 crores, ascribed to a 14% growth in Net Interest Income (NII) standing at ₹1,971 crores. The net interest margin (NIM) remained relatively constant at 7.1%. The quarter’s disbursements increased by 11% to ₹15,292 crores, while the Gross Loan Book increased by 24% year on year to ₹1,02,597 crore.
The company has also shown notable improvement in asset quality, with a considerable drop in Stage 3 assets to 3.4%, down from 4.0% in December 2023. Credit costs for the year remained below the target range of 1.5% – 1.7%, demonstrating good risk management methods.
Also Read | PSU Railway Stock: Dividend announcing on May 16
In its consolidated results, the firm generated a total income of ₹4,333 crores for the fourth quarter, up by 23% YoY, with a small fall in PAT of 1% to ₹671 crores. The consolidated disbursements increased by 11% YoY to ₹16,174 crores.
The company’s strategic ambitions included expanding its footprint in vehicle finance, notably pre-owned vehicle financing, which increased by 18% in FY24. In addition, Mahindra lending aims to increase its non-vehicle lending offerings to 15% of AUM in the medium future. This includes growing investments in industries such as SME finance, Lease and Purchase (LAP), and leasing via the Quiklyz platform.
