Mahindra & Mahindra Financial Services Reports Q2 FY25 Performance and Share Price Declines Around 5%

On October 3, 2024, Mahindra & Mahindra Financial Services Limited provided updates for its Q2 FY25 performance, highlighting both challenges and growth opportunities. 

In Q2 FY25, the company estimates its overall disbursement at approximately ₹13,160 crore, reflecting a year-on-year decline of 1% compared to the previous year. However, for the first half of FY25, disbursement is projected at around ₹25,900 crore, indicating a modest growth of 2% year-on-year.

The company reported significant growth in business assets, which stood at approximately ₹1,12,600 crore – an impressive increase of around 20% since September 2023. The collection efficiency remained stable at 96% for Q2 FY25, matching the performance of Q2 FY24. In terms of asset quality, as of September 30, 2024, the Stage-3 assets are estimated at about 3.8%, down from 4.3% as of the same date last year, while Stage-2 assets have risen to around 6.4% from 5.7% year-on-year. 

Mahindra & Mahindra Financial Services continues to maintain a strong liquidity position, boasting a liquidity chest of over ₹8,500 crore. 

However, the company’s share price faced a setback on October 4, 2024, opening at ₹316.00 and reaching a low of ₹300.00, on the NSE. As of 1:18 PM, the share price of Mahindra & Mahindra Financial Services was trading at ₹304.50 in red with a decline of more than 5%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.