M&M Financial Services Q3 results| Here are five key highlights

On a sequential basis, PAT has risen by over 40 percent.

While, the growth of PAT was 235 percent on a nine-monthly basis to Rs 1,300 crore, as compared to Rs 388 crore.

Slow growth in NII

During the reporting quarter, NII was Rs 1,650 crore, which was just up 7 percent on-year.

While the Net Interest Margin for the quarter was at 7.4 percent.

Total Income

The standalone total income of the non-banking finance company rose just 14 percent on-year to Rs 2,892 crore.

Total Income grew by 10 percent at Rs 7,999 crore during the nine-month ended December 31, 2022, as against Rs 7,252 crore during the corresponding nine-month last year.

On a consolidated basis, total Income increased by 12 percent to Rs 3,353 crore during the quarter that ended December 31, 2022, as against Rs 2,986 crore during the corresponding quarter last year.

Asset quality

Continued & Steady improvement in asset quality – gross stage 3 improves to 5.9 percent (6.7 percent in Q2 FY23) and gross stage 2 improves to 8.4 percent (9.7 percent in Q2 FY23).

Provision coverage on Stage 3 loans was maintained at 59.0 percent.

Provision in Sri Lanka subsidiary

During the nine-month ended December 31, 2022, the Company has made a provision, considered an Exceptional Item, of Rs 56 crore towards the impairment of assets pertaining to its subsidiary in Sri Lanka, Mahindra Ideal Finance Limited (MIFL) based on an assessment of the evolving economic crisis and its effect on currency devaluation.

During the corresponding period last year, the Company increased its shareholding in MIFL from 38.2 percent to 58.2 percent.

This stake increase resulted in the revaluation of its existing equity stake in MIFL, which led to a one-time revaluation gain of Rs 21 crore, which is shown as an Exceptional Item in the nine months of FY22 consolidated financials.