M&M Financial shares surge 8% after improvement on assets front in Q3
Published On: Monday, February 6, 2023 | By: Team KnowMyStock
Shares of Mahindra & Mahindra Financial Services (Mahindra Finance) hit over two-year high of Rs 267.30, as they rallied 10 percent on the BSE in Monday’s intra-day trade amid heavy volumes after the company reported healthy earnings for December quarter (Q3FY23). The company reported strong growth in assets under management and an improvement in asset quality during the third quarter. The total Income of the financial company increased by 12% to ₹3,353 Crores during the quarter that ended December 31, 2022, as against ₹2,986 Crores during the corresponding quarter last year. The Profit After Tax (PAT) stood at ₹664 Crores during the quarter that ended December 31, 2022, as against PAT of ₹992 Crores during the corresponding quarter last year. The fall in net profit was due to a decline in credit cost, higher operational expenditures, and lower net interest margins.
Net interest income grew 7 per cent quarter-on-quarter (QoQ) and 3 per cent year-on-year (YoY) to Rs 1,621 crore. Continued & Steady improvement in asset quality – gross stage 3 improves to 5.9 per cent (6.7 per cent in Q2FY23) and gross stage 2 improves to 8.4 per cent (9.7 per cent in Q2FY23). Provision coverage on Stage 3 loans was maintained at 59.0 per cent.
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