Mahindra & Mahindra Financial Services Ltd - updates for the month of November 2022

In November 2022, on the backdrop of positive macro environment, the business continued its momentum with disbursement of approximately Rs.4,500 crores delivering a 75% Y-o-Y growth. The YTD disbursement at approximately Rs. 31,050 crores registered a Y-o-Y growth of 99%.

Healthy disbursement trends have led to a strong gross asset book of approximately Rs. 76,300 crores, growing ~3.4% over September 2022. This has resulted in growth of ~17.5% vs March 2022.

The collection efficiency (CE) was at 96% for November 2022, against CE of 94% for November 2021.

Stage 2 assets as at November end experienced a sequential reduction compared to October 2022 and is estimated below 9%, While Stage 3 assets remained stable at lower than 7% as at month end. The company expects further improvement in Stage 2 and Stage 3 assets during December 2022.

Gross Non-Performing Assets (GNPA) (as per Income Recognition, Asset Classification and Provisioning norms) is estimated to be higher than Stage 3 asset by ~Rs.1200 crores, reconfirming the management belief that no additional provisions may be required over and above the Expected Credit Loss (ECL) provision for FY23.

The Company continued to enjoy a comfortable liquidity position on its Balance Sheet, with a liquidity chest of over 4 months.

Shares of Mahindra & Mahindra Financial Services Limited was last trading in BSE at Rs. 229.00 as compared to the previous close of Rs. 220.30. The total number of shares traded during the day was 300464 in over 4993 trades.

The stock hit an intraday high of Rs. 230.40 and intraday low of 219.65. The net turnover during the day was Rs. 68009468.00.

Source : Equity Bulls

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MahindraandMahindraFinancialServices INE774D01024 BusinessUpdate November2022