Q3 2024 Mahindra and Mahindra Financial Services Ltd Earnings Call Transcript
Key Points
- Mahindra & Mahindra Financial Services Ltd (BOM:532720) reported a YoY loan book growth of 25.5%, reaching INR 97,048 crores.
- The company maintained its leadership position in key segments such as tractors, preowned vehicles, passenger vehicles, and the three-wheeler segment.
- Net Interest Margins (NIMs) improved by 30 basis points QoQ, now standing at 6.8%.
- Gross Stage 3 (GS3) asset quality improved, reducing from 4.3% to 4% QoQ.
- The company has seen a significant decline in credit costs, from 2.4% in Q2 to 1.2% in Q3, indicating better asset quality management.
- The overall Profit After Tax (PAT) for the quarter saw a slight decline of 12%, standing at INR 553 crores.
- NIMs are 90 basis points lower compared to the previous year, largely due to the rising cost of funds.
- The tractor segment experienced a QoQ de-growth of 18%, reflecting industry-wide challenges.
- The SME business showed a QoQ and YTD de-growth, attributed to a strategic shift towards more granular retail business.
- The company's coverage ratio remains high at 63%, which is driven by the ECL model and may indicate higher-than-expected loss given default (LGD) ratios.
Ladies and gentlemen, good day, and welcome to the Mahindra & Mahindra Financial Services Limited Q3 and nine-months FY24 earnings conference call hosted by Motilal Oswal Financial Services Limited. This call will be recorded, and the recording will be made public by the company pursuant to its regulatory obligations. Certain personal information, such as your name and organization may be asked during the call. If you do not wish for it to be disclosed, please immediately discontinue this call.
(Operator Instructions)
I now hand the conference over to Mr. Abhijit Tibrewal from Motilal Oswal Financial Services.
Yeah. Thank you, Neerav. Good evening, everyone. Thank you very much for joining us for the Mahindra Finance call to discuss quarter three FY24 earnings. To discuss the earnings, I'm pleased to welcome Dr. Anish Shah, MD and CEO, Mahindra & Mahindra, and Chairman, Mahindra Finance; Mr. Ramesh Iyer, Vice Chairman and Managing Director; Mr. Raul Rebello, Executive
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