M&M Finance Q3 results: Net profit down 12% at Rs 553 cr, NII stands at Rs 1,815 cr

The net interest income of the company jumped 21 percent YoY to Rs 1815 crore from Rs 1650 crore last year.

Mahindra & Mahindra Financial Services on January 30 posted a decline of 12 percent in net profit at Rs 553 crore for the October-December quarter of FY24 from Rs 629 crore last year.

The lender's net interest margin (NIM) stood at 6.7 percent, down from 7.6 percent.

The company's net interest income (NII) jumped 21 percent YoY to Rs 1,815 crore from Rs 1,650 crore last year. Disbursements of the company jumped by 7 percent to Rs 15,436 crore versus Rs 14,467 crore last year. Auto and utility vehicles disbursements jumped by 37 percent to Rs 6007 crore, cars jumped by 19 percent to Rs 2974 crore and pre-owned vehicles jumped by 16 percent to Rs 2425 crore.

"To diversify within the Vehicle Finance book, the Company has been investing in used vehicle finance. The company already has 2 partnerships that are steadily growing, namely, ‘car&bike’and ‘CarDekho’" the company said in a press release.

The company also said that it plans to enter the insurance sector.

"We have unveiled plans to enter the insurance sector through partnerships with a few insurance providers, acting as a corporate agency. Initial investments will be directed toward technology, manpower, and certification. The shareholders have approved necessary changes to the Company’s charter (Memorandum of Association) and the company will now progress to make an application to the Insurance Regulator (IRDAI) for its approval," the company said.

Mahindra & Mahindra Financial Services closed the day at Rs 279.95 apiece, 0.48 percent up on BSE.