The company's gross stage 3 improves to 4.5% (5.9% in Q3 FY23) while gross stage 2 declined to 6.0% (8.4% in Q3 FY23). Provision coverage on Stage 3 loans was maintained at 59.5%.

Loan Book increased by 27% to Rs 82,770 crore compared to Q4 FY22. Disbursement for the quarter at Rs 13,778 crore was up 50% on YoY basis.

The firm said that the SME asset book, which is now upwards of Rs 4,400 crore, has grown 10% sequentially and contributes over 5% of the total business assets. The company was able to partially offset the cost of fresh borrowing by increasing the yields on current disbursements. This helped us in protecting net interest margins.

Collection Efficiency continued to be healthy at 99% in Q4FY23 as against 95% Q3 FY23.

As of March end, the company carried a total liquidity buffer of approximately Rs 10,400 crore- covering more than 3 months' obligations. Capital Adequacy was healthy at 22.5%.

On consolidated basis, Mahindra Finance's total income increased by 22% to Rs 3,536 crore for the quarter, as against Rs 2,897 crore for the corresponding quarter last year. The profit after tax (PAT) at Rs 675 crore was up 7% compared to Rs 629 crore for the corresponding quarter last year.

On full year basis, the company's standalone net profit surged 101% to Rs 1,984 crore as compared with Rs 989 crore in FY22. Total income grew by 14% year on year to Rs 11,056 crore in FY23.

On the outlook front the company expects macro-economy tailwinds should help the sector and the company to continue its growth journey. The company will focus on protecting and growing its market shares in vehicle segments – both new and pre-owned. Recent partnerships are expected to aid company improve its penetration in respective segments. In SME, the company will continue its focus on business loans & LAP for micro and small industry segments and vendor bill discounting. In Leasing, the focus on new customer acquisition will further accelerate.

The company's board has approved the appointment of Raul Rebello as the whole-time director designated as executive director and managing director (MD) & chief executive officer (CEO)- designate with effect from 1 May 2023 upto 29 April 2024 (both days inclusive) and as the managing director of the company designated as (MD & CEO) with effect from 30 April 2024 upto 30 April 2028 (both days inclusive)

Rebello will assume the office of the MD & CEO with effect from 30 April 2024, after superannuation of Ramesh Iyer, vice-chairman and MD of the company on 29 April 2024.

The board has also recommended the dividend of Rs 6 per equity share for FY23

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 8.7 million customers and has an AUM of over USD 11 Billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.