M&M Financial Services Q4 Disbursement At Rs 15,300 Cr

Shares of Mahindra & Mahindra Financial (Mahindra Finance) surged 4 per cent during Tuesday's trading session following the company's announcement of robust performance in the fourth quarter. The non-banking financial company reported a 11 per cent year-on-year increase in disbursements for the quarter, totaling Rs 15,300 crore. March disbursements alone grew by 9 per cent YoY, reaching Rs 6,100 crore, as disclosed in a filing with the BSE.

For the fiscal year 2023-24, Mahindra Finance recorded disbursements of Rs 56,200 crore, marking a notable 13 per cent growth.

The company highlighted its strong disbursement trends throughout FY24, resulting in Business Assets reaching approximately Rs 1,02,400 crore as of 31 March 2024. This represents a robust 24 per cent growth compared to the previous year-end and a 6 per cent increase from the end of December 2023.

Following this announcement, Mahindra Finance's stock surged by 4.27 per cent to touch a high of 299.10 on the BSE.

Mahindra Finance reported a collection efficiency of 101 per cent for March 2024, slightly lower than the 105 per cent recorded in March 2023. For the fourth quarter of FY24, the collection efficiency was estimated at 98 per cent, down from 99 per cent in the same period last year. The overall collection efficiency for FY24 remained steady at 96 per cent, matching the performance of FY23.

As of 31 March 2024, the company's Stage-3 assets were estimated at about 3.3 per cent, down from 4 per cent as of 31 December 2023 and 4.5 per cent as of 31 March 2023. Similarly, Stage-2 assets stood at around 5.1 per cent, compared to 6 per cent at both 31 December 2023, and 31 March 2023. Mahindra Finance maintained a comfortable liquidity position on its balance sheet, with a liquidity chest exceeding Rs 7,650 crore.