NBFC Mahindra & Mahindra Finance on Friday reported a 7.8 percent rise in net profit 684.1 crore for the quarter ending March 31, 2023. it is against net profit 600.60 crore in the corresponding quarter of the previous fiscal.
Meanwhile, its net interest income (NII), which is the difference between interest earned and spent, rose 10.2 per cent. 1,507 crore year-on-year (YoY) to 1,660.2 crore.
Total income for the quarter under review stood at Rs. 3,057 crore, up 24 percent YoY, while the net interest margin for the quarter stood at 7.4 percent.
Disbursement for the quarter in Rs. 13,778 crore was up 50 percent on YoY basis. As a result, the loan book grew by 27 per cent 82,770 crore on YoY basis.
The board has recommended a dividend of Rs. 6 per share on equity share of 2 each, i.e. 300%, subject to approval of the members. This translates to a dividend payout ratio of 37% for FY23 (FY22: 45%).
During the year ended March 31, 2023, M&M Finance has made a provision (considered as an extraordinary item) 55 crores for impairment of investments in its subsidiary company in Sri Lanka, Mahindra Ideal Finance Limited, based on an assessment of its impact on the evolving macro-economic crisis and currency devaluation. This provision was made during Q2 FY23.
For FY23, total income grew by 13% 12,832 crore as against Rs.11,401 crore in the previous year. Profit after tax Rs. 2,071 crore, an increase of 80% over the previous year, which reported a profit after tax 1,150 crores.
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