M&M Financial Services Q2 PAT seen up 19% to Rs 224cr: Poll

Mahindra & Mahindra Financial Services, the non-banking finance company of M&M group, will announce its second quarter (July-September) results on October 21. According to a CNBC-TV18 poll, analysts on an average expect standalone profit after tax to rise 19 percent year-on-year to Rs 224 crore in the quarter gone by.

Net interest income may increase 25 percent to Rs 656 crore in September quarter from Rs 526 crore in a year ago period as analysts feel the business growth is expected to continue.

M&M Financial has maintained its growth at assets under management (AUM) more than 30 percent for the past 10 quarters. Analysts expect AUM growth of 27-28 percent in September quarter due to festive season momentum in the cars segment.

According to a poll, margins could be maintained since the company hiked lending rates by 50-100 basis points across product segments during the quarter.

Net interest margin will witness only marginal compression of less than 10 basis points due to lending rates hike.

Analysts feel asset quality of the company could be under pressure due to continued weakness in car sales, but that is mostly expected to be stable. Disbursement growth is expected to be less than 15 percent.