Shares of Mahindra & Mahindra Financial Services limited, a wholly-owned subsidiary of Mahindra Group, plunged as much as 11.9% in early trade on Monday to hit an intra-day low of ₹244.25 apiece on the BSE, after the company reported a 47.5% year-on-year decline in its net profit to ₹235.18 crore in the July to September quarter of FY24 against ₹448.33 crore in the same period last year.

The scrip opened at ₹258.95 during the trading session on Monday, down by 6.63%, as against the previous closing price of ₹277.35. At the time of reporting, the share price of the financial services company was trading 11.65% lower at ₹245.00. During the session in early trade, the company's market capitalisation stood at ₹30,270.48 crore, with more than 10.61 lakh shares exchanging hands on the BSE as against the two-week average of 1.80 lakh shares. The company touched 52-week high of ₹346.40 on July 4 this year, whereas a 52-week low of ₹191.20 on November 2 last year.

During the quarter under review, the company's revenue from operations stood at ₹3,153.50 crore, up 24.8% year-on-year as against ₹2,516.31 crore in the same period last year. The company’s total income in the September quarter surged by 24% year-on-year to ₹3,240.49 crore, as against ₹2,609.32 crore. The company's net interest income during the quarter witnessed a surge of 9% year-on-year at ₹1,674 crore. "Net Interest Margin for the quarter at 6.5% was impacted by higher borrowing rates coupled with the change in portfolio mix in favour of better credit quality customers," says the company.

Meanwhile, the company’s consolidated net profit stood at ₹287.24 crore, witnessing a decline of 41.6% year-on-year, as against ₹492.04 crore in the same period last year. The company’s consolidated revenue from operations stood at ₹3,833.25 crore, up 27.3% as against ₹3,010.95 crore in the same period last year.

"Disbursement growth during the quarter was broad-based with a YoY growth of 13% and a sequential growth of 9%. We witnessed some slowdown in tractor disbursements during the current quarter largely led by uneven and sub-normal rainfall during monsoon in some parts of the sub-continent. In the first half, we disbursed ₹25,480 crore, a growth of 20% YoY, which led to a strong gross asset book size of ₹93,723 crore, resulting in growth of 13% during the first half of FY24," says the company.

"Our market share position was maintained in tractor, pre-owned vehicles, passenger vehicles and three wheelers segment. The SME asset book which is over ₹4,637 crore has grown 26% YoY and increased 4.1% sequentially. The book contributes 5% of the business assets," it adds. 

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