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Mahindra & Mahindra Financial Services reports robust growth and strong liquidity position

Oct 3, 2023

By: BlinkX Research Team

Mahindra & Mahindra Financial Services Limited has released its updates for the month of September 2023, showcasing impressive growth and a resilient financial position.

In September 2023, the company reported disbursements of approximately Rs. 4,500 crores, marking an impressive 11% year-on-year growth. The second quarter of FY24 saw disbursements reaching around Rs. 13,300 crores, reflecting a substantial 12.6% year-on-year growth. 

For the first half of FY24, disbursements amounted to nearly Rs. 25,500 crores, representing a remarkable 20% growth compared to the same period last year.

The company's Business Assets surged to approximately Rs. 93,600 crores, a robust 13% increase from March 2023 and an 8% increase from June 2023. This growth was driven by healthy disbursement trends in Q2FY2024 and pre-festival dealer advances.

Despite market challenges, the collection efficiency for September 2023 stood at 97%, showing a slight improvement from the 96% achieved in August 2023. In September 2022, the collection efficiency was recorded at 98%.

The company reported a Stage-3 rate of 4.4% (compared to 4.3% in June 2023) and a Stage-2 rate of 5.8% (compared to 6.4% in June 2023).The company has maintained a strong liquidity position throughout, with a liquidity chest equivalent to over 2.5 months.