M&M Finance Q4: Net Profit Up 7.8% To ₹684.1 Cr, Dividend Declared

Meanwhile, its net interest income (NII), which is the difference between interest earned and expended, rose 10.2 per cent to ₹1,660.2 crore from 1,507 crore year-on-year (YoY). 

The total income for the quarter under review came in at at Rs. 3,057 crore, up 24 per cent YoY, while the net interest margin for the quarter was at 7.4 per cent.

The disbursement for the quarter at Rs. 13,778 crore was up 50 per cent on YoY basis. Consequently, the loan book increased by 27 per cent to ₹82,770 Crores on YoY basis.

The board has recommended a dividend of ₹6 per share on equity share of ₹2 each, i.e. 300%, subject to the approval of the members. This translates to a dividend pay-out ratio of 37% for FY23 (FY22: 45%).

During the year ended March 31, 2023, M&M Finance has made a provision (considered as Exceptional Item) of ₹55 crores towards impairment of investment in its subsidiary in Sri Lanka, Mahindra Ideal Finance Limited based on an assessment of the evolving macro- economic crisis and its effect on currency devaluation. This provision was made during Q2 FY23.

For FY23, total income increased by 13% to ₹12,832 crore as against Rs11,401 Crore last year. The profit after tax at Rs. 2,071 crore grew 80% over last year which reported a profit after tax of ₹1,150 crores.