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

Executive summary

• Q3 FY25 was marked by stable performance, strong disbursement growth of 25% sequentially and 7% year-over-year, and PAT rising 63% year-over-year to INR 899 crore, driven by seasonality and revival in farm and passenger vehicle segments.

• Disbursements reached Rs 16,467 crore, business AUM grew 19% to Rs 1,15,126 crore, and strategic initiatives included exclusive EV lending, a co-branded credit card, insurance partnerships, and digital expansion.

• Senior leadership appointments, significant investments in digital transformation, AI, and workforce upskilling were highlighted.

• 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) for Q3 FY25 stood at 6.6%, up 10 bps sequentially, with standalone total income at Rs 4,144 crore and PAT at Rs 899 crore, up 63% year-over-year.

• Consolidated Q3 PAT was Rs 918 crore, up 47% year-over-year, with total income up 16%.

• GS3 ratio was 3.9%, up 10 bps sequentially, and credit cost for the quarter was only INR 9 crore, aided by a provision reduction of INR 434 crore.

• End losses for the nine months were INR 53 crore, INR 52 crore lower than the prior year period.

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

Outlook and guidance

• Credit cost guidance for FY25 and going forward is maintained at 1.3%-1.5%, with expectations to keep GS3 range-bound and end losses on a declining trend.

• NIM guidance for FY25 is 6.5%-6.7%, with a long-term aspiration of 7% and ROA targets of 1.8%-2% for the year.

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

• No defaults on loans or debt securities; no deviation in use of proceeds from private placement of debentures.