M&M Finserv down by 10 per cent on weak results

Mahindra & Mahindra Financial Services reported 66 per cent decline in PAT for Q1FY20 on a consolidated basis. Reacting to the results, the stock was among the top losers in Wednesday's morning session.

For the June quarter, on a consolidated basis, the company's total income was Rs. 28,384 million as compared to Rs. 23,020 million for Q1FY19, an increase of 23 per cent. PAT for Q1FY20 was at Rs. 1,085 million as compared to Rs. 3,223 million in Q1FY19, a decrease of 66 per cent. Value of assets financed was flat at Rs. 110,959 million.

On the asset quality front, the company's Gross NPA was at 7.4 per cent in Q1FY20 as compared to 5.9 per cent in March quarter and 9.4 per cent in Q1FY19. While Net NPA was at 5.7 per cent in Q1FY20 compared to 4.8 per cent in March quarter and 6.3 in Q1FY19.

Mahindra & Mahindra Financial Services Limited (MMFSL) is a subsidiary of Mahindra and Mahindra Limited. The company is a leading financer for auto and tractors in the rural and semi-urban markets, including pre-owned vehicles.

On Wednesday, at 9:45 hours, the stock of M&M Financial Services was trading at Rs. 305.50 down by Rs. 34.65 or 10.19 per cent on NSE.