Total income stood at Rs 2,609.32 crore in quarter ended 30 September 2022, up 3.4% from Rs 2,522.39 crore recorded in the same period last year.

The company's profit before tax slumped 55.8% to Rs 610.71 crore in Q2 FY23 as compared to Rs 1,383.07 crore reported in Q2 FY22.

Net Interest Income (NII) stood at Rs 1,540 crore was up 2% YoY. Net Interest Margin (NIM) for the quarter was at 7.5%.

Disbursement during the quarter stood at Rs 11,824 crore, registering a growth of 83% year on year and 25% sequentially. Collection Efficiency remained strong indicating cash flow generating capability of our customer segment.

Loan Book increased by 9% to Rs 73,817 crore compared to Q1 FY23 aided by increase in disbursements.

Gross Stage 3 (GS-3) improved to 6.7% as on 30 September 2022 from 8% reported in Q1 FY23 and 12.7% in Q2 FY22. The improvement was supported by focused collection initiatives, timely settlements and macro tailwinds. 

The gross business assets were at Rs 73,817 crore as of 30 September 2022, as against Rs 64,961 crore as on 31 March 2022. There has been an increase of 9% sequentially and 16% on a YoY basis.

The company's capital adequacy stood at 23.8%. Provision coverage on Stage 3 loans was maintained at 58.2%.

Mahindra Finance said, “We continue to maintain leadership position in financing of Tractor and Mahindra Auto segment. With evolving segment and customer mix, we expect to maintain quality growth. We are witnessing strong demand in the Tractor segment, aided by above average monsoon conditions and continued spending by government on rural projects. Increasing penetration in the used vehicles financing continues to be our focus area to help improve margins. The company continues to invest in digitization, partnerships and transformation projects.”

On a consolidated basis, the NBFC's net profit slumped 55.4% to Rs 492.04 crore despite of 2% rise in total income to Rs 3,041.13 crore in Q2 FY23 over Q2 FY22.

Announcing the business update for October 2022, Mahindra Finance said that it estimates the total disbursement of approximately Rs 5,250 crore, delivering 97% growth over October 2021.

The collection efficiency (CE) was at 91% for October 2022, similar to the CE reported for October 2021 The Gross Stage 3 (GS 3) as at October end is estimated at 7%.

The NBFC said that it continued to hold adequate liquidity buffer which covers 4 months' funds requirement.

Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 8.4 million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

Shares of Mahindra & Mahindra Financial Services jumped 9.61% to Rs 212.20 on the BSE.