M&M Fin's upbeat view fails to inspire

The Street despises earnings unpredictability and repeat offenders are usually punished severely. A case in point is Mahindra & Mahindra Financial Services Ltd (M&M Financial). The stock plunged on Monday, falling nearly 12% after the September quarter (Q2FY24) results disappointed on key parameters.

- Pallavi Pengonda

Higher provisions dented net profit and despite healthy assets under management (AUM) growth of 27% year-on-year, net interest income lagged analysts’ expectations. Reported net interest margin (NIM) at 6.5% fell by 30 basis points sequentially. Rising cost of borrowing, elevated credit costs and lower yields (due to shift in the product mix towards low-yielding segments) played spoilsport.