M&M Financial Services Q4 Review - Strengthening The Balance Sheet: Motilal Oswal
Mahindra & Mahindra Financial Services Ltd. signage is displayed outside one of the company’s branches in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)  

M&M Financial Services Q4 Review - Strengthening The Balance Sheet: Motilal Oswal

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Motilal Oswal Report

Mahindra & Mahindra Financial Services Ltd. reported net profit of Rs 1.5 billion versus our profit after tax estimate of Rs 6.2 billion.

While operating profit grew 9% YoY to Rs 10.5 billion (4% beat), higher provisions of Rs 8.9 billion (versus our expectation of Rs 1.7 billion) drove the profit after tax miss.

The increase in provisions is largely on account of one-off additional provisions of Rs 13.2 billion taken in Q4 FY21.

Net interest income/pre-provision operating profit for FY21 was up 8%/22% YoY, while profit after tax declined 63% YoY to Rs 3.4 billion.

Total credit costs stood at 6% – the highest in the past decade.

Click on the attachment to read the full report:

Motilal Oswal M&M Financial Services Q4FY21 Result Review.pdf

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