Mahindra and Mahindra Financial Services Ltd (Mahindra Finance) on Tuesday (January 2) said the company's disbursements for December 2023 were estimated to be around ₹4,900 crore, marking a noteworthy 5% increase over the same period in the previous year.
The trend of growth persisted throughout the third quarter FY2024, with disbursements reaching approximately ₹15,500 crore, indicating a strong 7% year-on-year growth.
The Year-to-Date (YTD) disbursement till December 2023 stands at ₹40,950 crore, boasting a 15% year-on-year growth, the non-banking financial arm of Mahindra Group said in a regulatory filing.
"The Q3 FY2024 disbursements at about ₹.15,500 crores registered a growth of 7% YoY, and the YTD December disbursement estimated at approximately ₹40,950 crores registered a growth of 15% YoY," the finance company said.
This momentum has translated into a robust balance sheet for the company, with business assets reaching around ₹96,850 crore. This represents a 17% growth over March 2023 and an outstanding 25% surge over December 2022.
Mahindra Finance has also maintained a collection efficiency (CE) of 98% for December 2023, showcasing an improvement from the 94% achieved in November 2023. Remarkably, this mirrors the CE recorded in December 2022.
Furthermore, the company has made commendable progress in managing asset quality. Stage 3, representing assets at higher risk of non-repayment, is estimated at 4%, showcasing a decline from 4.3% in September 2023 and a substantial improvement from 5.9% in December 2022.
Similarly, Stage-2 assets, indicating potential future credit risks, are estimated at around 5.8%, a marginal increase from 5.7% in September 2023 but a noteworthy reduction from 8.4% in December 2022.
The company's liquidity position remains robust, with a liquidity chest of over 2.5 months. "The company continued to enjoy a comfortable liquidity position on its Balance Sheet, with a liquidity chest of over 2.5 months," it added.
Shares of Mahindra & Mahindra Financial Services Ltd ended at ₹276.65, up by ₹1.50, or 0.55%, on the BSE.
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