M&M Financial Q1 Review - Disbursement Run-Rate, Collections Bouncing Back: Systematix
Mahindra & Mahindra Financial Services Ltd. signage is displayed outside one of the company’s branches in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

M&M Financial Q1 Review - Disbursement Run-Rate, Collections Bouncing Back: Systematix

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Systematix Research Report

Mahindra and Mahindra Financial Services Ltd. reported a loss of Rs 15.3 billion in Q1 FY22 due to higher provisions.

The management has guided for an 80-90% writeback of provisions in H2 FY22E.

M&M Financial has been prudent in recognising the credit cost upfront and provided well with its stage-III provision cover at 53.7%.

The management overlay is now at ~4.5% of assets under management.

Despite lower working days and reduced freight movement, its disbursement run-rate and collections are bouncing back to pre-Covid-19 levels.

We remain sanguine about provision write-backs and expect a disbursement run-rate of Rs 65-85 billion in FY22E.

Click on the attachment to read the full report:

Systematix M&M Financial Services Q1FY22 Result Update.pdf


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