MM Financial spikes 20% after strong Q4 earnings

Non-banking finance company Mahindra & Mahindra Financial Services rallied 20 percent in early trade to hit a 52-week high of Rs 247.25 on Thursday after reporting strong fourth quarter numbers.

Net interest income of the company rose by 32 percent year-on-year to Rs 721 crore and total income increased 34 percent to Rs 1,185 crore.

High recoveries, capital gains and stable disbursements drove robust operational performance for the company.

Meanwhile, profit after tax was up by 43 percent YoY to Rs 346 crore in January-March quarter, boosted by exceptional income of Rs 30 crore.

Exceptional income includes profit on stake sale in subsidiary MIBL for Rs 66 crore.

In financial year 2012-13, total income grew by 41 percent to Rs 4,113 crore and profit after tax moved up by 44 percent to Rs 927 crore compared to previous year.

Disbursements were up 22% and asset under management was up 35 percent in FY13 YoY.
 
At 10:21 hours IST, the stock was up 9.75 percent to Rs 226.15 amid large volumes on Bombay Stock Exchange.

Trading volumes increased nearly three times to 6,13,600 shares as compared to its five-day average of 2,22,225 shares.