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

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.