Mahindra Finance announces its Q2 FY24-25 results
Mahindra Finance announces its Q2 FY24-25 results
Standalone:
Key Points: Q2 FY25 PAT grows 57% YoY to ₹ 369 crores v/s ₹ 235 crores
- AUM (Business assets): ₹ 1,12,454 crores v/s ₹ 93,723 crores, YoYá 20%
- Disbursement: ₹ 13,162 crores v/s ₹ 13,315 crores, YoYâ 1%; YoY á 2% for H1 FY25
- Total Income: ₹ 3,925 crores v/s ₹ 3,240 crores, YoY á 21%; PPOP: YoYá 27%
- Stable Market Share in Passenger Vehicles and Tractors.
- Asset quality: GS2+GS3 @ 10.3%. Stage-3 @3.8%. Credit Cost:2.3% v/s 2.4% (Q2FY24)
- Capital Adequacy healthy at 16.7% – Tier-1 Capital @ 14.8%. Provision coverage on Stage 3 loans prudent at 59.5%. Total liquidity buffer comfortable at ₹ 8,912 crores
FY 2025 Q2 Standalone Results:
| Q2FY25 Results (₹. Crores) | Q2FY25 | Q2 FY24 | YoY % | Q1 FY25 | QoQ % | H1FY25 | H1 FY24 | YoY % | |
| Total Income (TI) | 3,925 | 3,240 | 21% | 3,760 | 4% | 7,685 | 6,366 | 21% | |
| Net Interest Income (NII) | 1,991 | 1,674 | 19% | 1,932 | 3% | 3,922 | 3,349 | 17% | |
| NII Margin(as % of Avg. Total Assets) | 6.5% | 6.5% | 6.6% | 6.5% | 6.6% | ||||
| Pre-Provisioning Operating Profit (PPOP) | 1,196 | 943 | 27% | 1135 | 5% | 2,331 | 1,943 | 20% | |
| Credit Costs | 703 | 627 | 12% | 448 | 57% | 1,152 | 1153 | 0% | |
| Credit Costs(as % of Avg. Total Assets) | 2.3% | 2.4% | 1.5% | 1.9% | 2.3% | ||||
| Profit After Tax | 369 | 235 | 57% | 513 | -28% | 882 | 588 | 50% | |
| ROA (as % of Avg. Total Assets) | 1.2% | 0.9% | 1.8% | 1.5% | 1.2% | ||||
| Disbursements | 13,162 | 13,315 | -1% | 12,741 | 3% | 25,903 | 25,480 | 2% | |
| Gross Loan Book (YTD) | 1,12,454 | 93,723 | 20% | 1,06,339 | 6% |
Operations:
As of September 30, 2024 (Q2FY25), Business Assets stand at ₹ 1,12,454 crores, reflecting a 20% YoY growth. As growth in various Wheels segments viz. passenger vehicles, commercial vehicles etc. slowed down, the disbursements for the first half of FY25 were ₹ 25,903 crores, a relatively muted growth of 2% YoY. Disbursements for Q2FY25 were ₹ 13,162 crore.
The collection efficiency remained stable at 96%, consistent with the same quarter of the previous year. The Company continued its focus on enhancing underwriting standards and addressing early-stage delinquencies. Stage-3 assets were at 3.8%, an improvement over 4.3% a year ago. Sequentially, there has been some uptick (June end stage-3 assets at 3.6%). About 40% of this increase was contributed by Tractor segment. With Kharif cashflows, the Company expects normalization in Q3 FY25. Stage-2 and Stage-3 assets put together were at 10.3%.
