Mahindra & Mahindra Financial Services Ltd on Tuesday recorded its fiscal first quarter profit at Rs 497.01 crore, up 37.2 per cent in comparison to Rs 362.22 crore recorded during the corresponding quarter of FY24. On a standalone basis, the company posted Q1 profit at Rs 512.96 crore, registering a growth of 45.5 per cent as against Rs 352.66 crore during Q1FY24. It recorded revenue from operations at Rs 3,722.21 crore, up 20.7 per cent from Rs 3,084.56 crore posted during the first quarter of previous financial year. M&M Finance posted AUM at Rs 1,06,339 crore during the quarter in review, up 23 per cent on-year.
Further, disbursements during Q1FY25 stood at Rs 12,741 crore, recording a growth of 5 per cent YoY. The collection efficiency remained steady at 94 per cent, similar to the first quarter of FY24. With continued focus on underwriting standards and addressing early bucket delinquency, the asset quality remained stable, the company said. M&M Finance offers financing to three-wheelers, passenger vehicles (PVs), commercial vehicles (CVs), light commercial vehicles (LCVs) and small commercial vehicles (SCVs). It is also the leading financer in the tractors segment and now also holds a strong position in the pre-owned vehicle business.
“The company remains committed to expanding its footprint in new business categories. As part of this initiative, the new product portfolios – SME lending, loan against property (LAP), and leasing (Quiklyz), are demonstrating consistent growth potential. The company has also partnered with digital MSME lender Lendingkart under a co-lending arrangement to offer business loans to MSMEs. The company recognizes the growth potential within the SME sector in India, and is thus strategically partnering with key industry stakeholders. Overall, the SME portfolio disbursement grew YoY 68 per cent in Q1FY25,” it said in a regulatory filing. The NBFC also said that it plans to grow its non-vehicle finance segment to 15 per cent of the AUM over the medium term.
M&M Finance’s balance sheet remained strong with a capital adequacy ratio of 18.5 per cent. In addition, the company maintained a comfortable liquidity chest of around Rs 8,216 crore.