M&M Financial is undoubtedly the newsmaker today; from its close of Rs.229, it opened higher today at Rs.232.20 and went on to hit a new 52-week high at Rs.243.60; its currently trading at Rs.240 levels.
The company announced its monthly update for the month gone by, Nov, and it’s a good picture.
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) 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 said that it continued to enjoy a comfortable liquidity position on its Balance Sheet, with a liquidity chest of over 4 months.