Mahindra & Mahindra Financial Services will announce its third quarter (October-December) earnings on Wednesday. Analysts on an average expect the non-banking finance company to report 20 percent growth in standalone profit after tax of Rs 240 crore.
Net interest income may increase 27 percent to Rs 712 crore in the quarter ended December 2013 compared to Rs 561.2 crore in a year ago period.
In earlier quarter (September 2013), profit of the company was risen 18 percent and net interest income 29 percent.
Key points to watch out for are disbursement growth, asset quality, commercial vehicle portfolio and provisioning coverage ratio (PCR).
Analysts expect disbursement growth to moderate to single digit or around 10 percent in the quarter gone by. That was dropped to 4.6 percent year-on-year in Q2 as against 30 percent in Q1 on account of focus on recoveries versus growth.
The growth in asset under management is expected at around 25 percent in December quarter as against 31 percent in previous quarter while net interest margin may remain stable.
In the quarter ended September 2013, net interest margin expanded 30 basis points sequentially to 8.9 percent.
Asset quality is expected to be steady on sequential basis, but overall commercial vehicle (CV) portfolio will be closely watched. There was maximum stress in CV portfolio in September quarter. CV portfolio also saw a 9 percent decline in disbursements.
The company has completely stepped out of the heavy CV market. PCR will also be watched as it fell 150 basis points sequentially to 54.7 percent in September quarter.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
