M&M Finance Q4: Net Profit Increases 7.8% To $684.1 Mn, Announces Dividend

NBFC Mahindra and Mahindra Finance announced a 7.8 per cent increase in net profit to 684.1 crore for the quarter that ended 31 March 2023 on Friday. This compares to a net profit of 600.60 crore in the previous fiscal's corresponding quarter.

Meanwhile, its net interest income (NII), the difference between interest earned and interest expended, increased 10.2 per cent year on year (YoY) to 1,660.2 crore from 1,507 crore. 

The overall income for the quarter under review was Rs 3,057 crore, a 24 per cent increase year on year, while the net interest margin was 7.4 per cent.

The quarterly disbursement of Rs. 13,778 crore was up 50 per cent year on year. As a result, the loan book climbed by 27 per cent year-on-year to 82,770 crores.

Subject to member agreement, the board has suggested a dividend of USD 6 per share on equity shares of USD 2 each, i.e. 300 per cent. This equates to a dividend payout ratio of 37 per cent in FY23 (45 per cent in FY22).

M&M Finance made a provision (considered an Exceptional Item) of 55 crore for impairment of investment in its subsidiary in Sri Lanka, Mahindra Ideal Finance, during the fiscal year ended 31 March 2023, based on an assessment of the evolving macroeconomic crisis and its impact on currency depreciation. This provision was made during the second quarter of FY23.

Total income climbed by 13 per cent to Rs12,832 crore in FY23, up from Rs11,401 crore the previous year. The profit after tax of Rs. 2,071 crore increased by 80 per cent over the last year's profit after tax of Rs. 1,150 crore.