M&M Finance Q4 preview: NII likely to rise 11%; asset quality may improve

M&M Finance Q4 Preview: Mahindra & Mahindra Financial Services (M&M Finance) is expected to post a good set of numbers for the March 2024 quarter (Q4 FY24). The company is slated to release its financial results on April 23. 

As per Zee Business Research desk, the company will report a standalone profit of Rs 740 crore, up 8.2 per cent year-on-year (YoY). The company had posted a profit of Rs 684.1 crore in the year-ago period. 

Net interest income (NII), the difference between interest earned and interest expended, a key metric for finance companies, is expected to come in at Rs 1,775 crore against Rs 1,600.4 crore logged in the corresponding quarter of the previous fiscal, a growth of 10.9 per cent. The net interest margin (NIM) is seen as flat at 6.8 per cent. 

Asset quality is likely to improve on a year-over-year basis. The gross non-performing assets (GNPAs) are pegged at 3.9 per cent against 3.97 per cent in the March 2022 quarter. Net non-performing assets (NNPA) are pegged at 1.5 per cent against 1.52 per cent. Writebacks, too, will contribute to asset quality improvement, the desk notes. 

M&M Q4 business updates

The company informed exchanges that in March 2024, the disbursements rose by 9 per cent year-on-year to Rs 6,100 crore. The collection efficiency jumped 101 per cent in March. During Q4, the disbursement grew by 11 per cent YoY to Rs 15,300 crore, while in the overall FY24, the disbursement jumped 13 per cent YoY to Rs 56,200 crore.