M&M Financial Services Q4 disbursement at Rs 15,300 cr; stock up 4%

Mahindra & Mahindra Finacial Services Ltd (Mahindra Finance) saw its shares rallying 4 per cent in Tuesday's trade after the NBFC said disbursements in the fourth quarter came in at Rs 15,300 crore, up 11 per cent YoY. Disbursements grew 9 per cent year-on-year at Rs 6,100 crore for the month of March, Mahindra Finance said in a BSE filing.  

For the financial year 2023-24, disbursements stood at Rs 56,200 crore, up 13 per cent.

"Healthy disbursement trends during FY24 have led to Business Assets at around Rs 1,02,400 crore as at March 31, 2024, a growth of about 24 per cent over March 31, 2023 and approximately 6 per cen over December 31, 2023," Mahindra Finance said.

Following the development, the stock rose 4.27 per cent to hit a high of 299.10 on BSE.

Mahindra Finance said the collection efficiency stood at 101 per cent for March 2024 gainst 105 per cent in March 2023. For Q4FY24, the collection efficiency was estimated at 98 per cent against 99 per cent in the previous quarter of last year. For FY24, collection efficiency came in at 96 per cent, the same as FY23.

"As at March 31, 2024, Stage-3 is estimated at about 3.3 per cent (vs 4 per cent as at December 31, 2023 and 4.5 per cent as at March 31, 2023) and Stage-2 is estimated at around 5.1 per cent (vs 6 per cent both as at December 31, 2023
and March 31, 2023). The company continued to enjoy a comfortable liquidity position on its Balance Sheet, with a liquidity chest of over Rs 7,650 crore," Mahindra Finance said.