Mahindra & Mahindra Financial Serv. will hold a meeting of the Board of Directors of the Company on 28 January 2021.

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Mahindra & Mahindra Financial Services Ltd rose for a third straight session today. The stock is quoting at Rs 165.9, up 5.97% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.06% on the day, quoting at 12945.8. The Sensex is at 44120.24, down 0.14%. Mahindra & Mahindra Financial Services Ltd has added around 26.83% in last one month.

Meanwhile, Nifty Financial Services index of which Mahindra & Mahindra Financial Services Ltd is a constituent, has added around 20.34% in last one month and is currently quoting at 14301.45, down 0.54% on the day. The volume in the stock stood at 138.39 lakh shares today, compared to the daily average of 104.01 lakh shares in last one month.

The benchmark November futures contract for the stock is quoting at Rs 163.9, up 4.43% on the day. Mahindra & Mahindra Financial Services Ltd is down 17.37% in last one year as compared to a 7.89% gain in NIFTY and a 1.73% gain in the Nifty Financial Services index.

The PE of the stock is 18.56 based on TTM earnings ending September 20.

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Mahindra & Mahindra Financial Services Ltd is up for a fifth straight session today. The stock is quoting at Rs 128.4, up 1.34% on the day as on 12:54 IST on the NSE. The benchmark NIFTY is up around 1.57% on the day, quoting at 12095.3. The Sensex is at 41269.35, up 1.61%. Mahindra & Mahindra Financial Services Ltd has slipped around 2.25% in last one month.

Meanwhile, Nifty Financial Services index of which Mahindra & Mahindra Financial Services Ltd is a constituent, has slipped around 11.76% in last one month and is currently quoting at 12458.25, up 1.45% on the day. The volume in the stock stood at 44.49 lakh shares today, compared to the daily average of 84.17 lakh shares in last one month.

The benchmark November futures contract for the stock is quoting at Rs 129.1, up 1.33% on the day. Mahindra & Mahindra Financial Services Ltd is down 39.01% in last one year as compared to a 1.08% jump in NIFTY and a 8.6% jump in the Nifty Financial Services index.

The PE of the stock is 15.02 based on TTM earnings ending September 20.

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Profit before tax (PBT) in Q2 September 2020 stood at Rs 487.57 crore, down by 3.8% from Rs 506.93 crore in Q2 September 2019. Current tax expense surged 243.5% to Rs 208.95 crore in Q2 FY21 from Rs 60.83 crore in Q2 FY20.

The decline in PBT during Q2 of current year is primarily attributable to higher level of impairment provisions/losses of Rs 282 crore during this quarter through management overlay to reflect deterioration in the macroeconomic outlook arising out of COVID-19 pandemic related disruptions, Mahindra & Mahindra Financial Services (Mahindra Finance) said in a statement.

During the period ended 30 September 2020, the company's customer base has crossed 6.9 million, it added.

Impairment provisioning is done as per Expected Credit Loss (ECL) method in lnd AS, which requires provisioning in three stages. The gross stage 3 levels stood at 7.0% as at 30 September 2020, against 7.9% as at corresponding reporting date last year. The net stage 3 levels stood at 4.7% as at 30 September 2020, against 6.4% as at corresponding reporting date last year. The stage 3 provisioning coverage ratio stood at 35.1% as at 30 September 2020, against 19.5% as at corresponding reporting date last year.

The company has complied with the prudential guidelines issued by the Reserve Bank of India and has been making accelerated provision. During the quarter ended 30 September 2020, the Company has considered an additional charge of Rs 433 crore (half year ended 30 September 2020: Rs 910 crore) due to a management overlay, to reflect deterioration in the macroeconomic outlook.

As at 30 September 2020, the cumulative amount of management overlay provisions stood at Rs 1,484 crore. The company has initiated various cost rationalization measures and expects a benefit from the same in the future.

On a standalone basis, the company reported 20.6% rise in net profit to Rs 303.53 crore on 4.3% increase in total income to Rs 2649.51 crore in Q2 September 2020 over Q2 September 2019.

Mahindra Finance's standalone Assets Under Management (AUM) stood at Rs 81,682 crores as on 30 September 2020, as against Rs 72,732 crore as on the corresponding reporting date last year, registering a growth of 12%.

The company maintains a very healthy capital adequacy of 25.1% and has adequate capital and financial resources to run its business. Its capital and debt position is strong and the ALM (asset and liability management) position is well balanced.

M&M Financial said: The rural market has remained sufficiently insulated from the COVID-19 pandemic and is recovering from its impact. Almost all the company's branches are up and running, except in the major metros.

After a few months of disruption due to COVID-19 pandemic and subsequent lockdown, we see that markets are now beginning to look up and the sentiments are turning positive. Businesses are returning back to normal and customer footfalls at the dealerships and our branches have substantially improved. Agri demand continues to be strong on the back of a good monsoon and harvest. We expect demand to further pick-up in the upcoming festival season. The Government focus on infrastructure and mining sectors is likely to further shore up demand, going forward.

Tractors, passenger cars and Light Commercial Vehicles (LCVs) are seeing healthy demand. Pre-owned vehicles will continue to be a growth driver. The company also expects to see an increase in digitally enabled lending and collections in rural and semi-urban markets. The company had already embarked on a digital strategy and is equipped to facilitate financing as well as repayment of installments, via the digital route.”

The scrip fell 2.06% to Rs 128.15 on the BSE. It traded in the range of 126.30 and 132.80 so far during the day.

Mahindra Finance, part of the Mahindra Group, is an NBFC. Focused on the rural and semi-urban sector, the company has over 6.9 Million customers and has an AUM of over $11 billion. The company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

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