M&M Financial Q4 Review - Higher Provision Coverage Ratio A Positive; Business Outlook Weak: Centrum Broking
A customer counts Indian rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

M&M Financial Q4 Review - Higher Provision Coverage Ratio A Positive; Business Outlook Weak: Centrum Broking

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.

Centrum Broking Report

Mahindra and Mahindra Financial Services Ltd. earnings were mixed as pre-provision operating profit beat estimate led by net interest income/operating expense though higher provisions was also led by overlay/write-offs.

Assets under management growth fell 5% year-on-year was a miss driven by lower disbursals, and considering the severe second Covid-19 wave, collections would take a precedence over disbursals in FY22E.

Net interest margin was better at 8.0% due to lower funding cost.

Opex benefit continues with lower employee expense and cost to assets for FY21 was 2.2% (estimate 2.3%).

Click on the attachment to read the full report:

Centrum Broking M&M Financial Services - Q4FY21 Result Update .pdf

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