Mahindra Finance Q4 Earnings Overview

Non-bank lender Mahindra Finance announced a 9% decline in standalone profit for the March quarter, reporting Rs 563 crore compared to Rs 619 crore in the same period last year.

Financial Performance Insights

The company's core net interest income saw a 9% growth to Rs 2,156 crore, supported by a 17% increase in the loan book. However, this growth was tempered by a narrowing interest margin, which fell to 6.5% from 7.1% year-over-year.

Challenges and Asset Quality

Provisions or credit costs surged by 34% to Rs 457 crore, up from Rs 341 crore in the previous year, significantly impacting the bottom line. On the asset quality front, the GS2+GS3 ratio stood at 9.1%, with stage 3 at 3.7%.

Capital Adequacy and Liquidity

Despite these challenges, Mahindra Finance maintains a comfortable capital adequacy ratio of 18.3% and a robust liquidity buffer of Rs 10,400 crore, indicating a strong financial position to navigate future uncertainties.