Mahindra Financial rises high

about 12 months ago
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Mahindra & Mahindra Financial Services is doing great; the stock opened 2.5% higher at Rs.264.85 and went on to hit a new high at Rs.277.95, an over three-year high.

The market is super thrilled with its Q4FY23 earnings. On a consolidated basis, its total Income increased by 22% to Rs. 3,536 crore on which PAT came in at Rs.675 crore, up 7%.

And on a standalone basis, total income rose 24% at Rs.3057 crore and PAT rose 14% at Rs.684 crore. NII rose 13% at Rs.1723 crore.

The company’s Capital Adequacy was healthy at 22.5%. and as at 31st March’23, it carried a total liquidity buffer of approximately Rs. 10,400 crore - covering more than 3 months’ obligations.

The company ended FY23 with a  13% rise in consolidated total income at Rs.12,832 crore and PAT came in at Rs.2071 crore, up by a very good 80%.

During the year ended March 31, 2023, the company had made a provision (considered as Exceptional Item) of Rs. 56 crore towards impairment of assets pertaining to its subsidiary in Sri Lanka, Mahindra Ideal Finance Limited (MIFL) based on an assessment of the evolving economic crisis and its effect on currency devaluation. During the corresponding period last year, the company increased its shareholding in MIFL from 38.2% to 58.2%, resulting in a one-time revaluation gain of Rs. 21 crore, which is shown as Exceptional Item in the FY22 consolidated financials.

On future outlook, the company is optimistic, saying that the macro-economy tailwinds should help the sector and the company to continue its growth journey and its focus will be protecting and growing its market shares in vehicle segments – both new and pre-owned. In SME, the company plans to continue its focus on business loans & LAP for micro and small industry segments and vendor bill discounting.

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