Mahindra & Mahindra Financial Services (M&MFIN) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was marked by stable performance, strong disbursement growth, and a 63% year-over-year rise in PAT to Rs 899 crore, with positive momentum in margins and asset quality.

• Disbursements increased 7% year-over-year to Rs 16,467 crore, with business AUM up 19% to Rs 1,15,126 crore.

• Strategic initiatives included exclusive EV lending partnerships, co-branded credit cards, and expanded insurance distribution.

• Standalone and consolidated financial results for Q3 and nine months ended December 31, 2024, were reviewed and approved by the Board and Audit Committee, with unmodified opinions from statutory auditors.

Financial highlights

• Net Interest Margins (NIMs) stood at 6.6% for the quarter, up 10 bps sequentially but down 20 bps year-over-year; cost of funds elevated at 6.4%.

• Standalone Q3 revenue from operations was Rs 4,143 crore, with net profit at Rs 899.47 crore; consolidated Q3 revenue was Rs 4,796.80 crore, with net profit at Rs 917.64 crore.

• Provision coverage ratio (PCR) dropped from 59% to 50% due to improved collections from a significant legacy pool.

• Credit cost for the quarter was kept low, with a targeted annual range of 1.3%-1.5%.

• Earnings per share (Q3): Standalone basic Rs 7.28, consolidated basic Rs 7.43.

Outlook and guidance

• NIMs expected to close FY25 in the 6.5%-6.7% range; credit costs guided at 1.3%-1.5%.

• Asset growth targeted in the mid to high teens for the next year.

• ROA guidance for FY25 is 1.8%-2.0%, with long-term aspiration at 2.5%.

• FY25 targets: GS2+GS3 below 10%.