M&M Financial Q3 Review - Asset Quality Vulnerability Explicit: Prabhudas Lilladher
Mahindra & Mahindra Financial Services’s signage outside one of the company’s branches in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

M&M Financial Q3 Review - Asset Quality Vulnerability Explicit: Prabhudas Lilladher

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Prabhudas Lilladher Report

Mahindra and Mahindra Financial Services Ltd.’s Q3 FY21 earnings stood disappointed characterized by -

  1. increase of 70/127 basis points YoY/QoQ in non-performing asset to 10%

  2. 6% of morat availed customer contracts exhibiting nil collections, 3% of which with zero payments until September 2020

  3. higher utilization of stage two provisions; credit costs at 8.8%

  4. continued higher write-offs (Rs 3 billion in Q3)

  5. slower disbursements in flagship tractor business.

Resultantly, bottom-line took a beating reporting net loss (Rs 2.74 billion) as against profit expectations (Rs 2.63 billion).

Click on the attachment to read the full report:

Prabhudas Lilladher M&M Financial Services Q3FY21 Result Update.pdf

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