Mahindra & Mahindra Financial Services Reports Positive Growth in Q2 2024 Results

Mahindra & Mahindra Financial Services, a largecap finance company, has recently announced its financial results for the quarter ending September 2024. According to the latest report, the company has shown positive growth in its financial performance, with a score of 7 out of 10, an improvement from the previous score of 6 in the last 3 months.

One of the key highlights of the financial results is the net sales, which have reached an all-time high of Rs 4,465.15 crore and have shown consistent growth in the last five quarters. This indicates a very positive trend in the company's near-term sales performance.

Another positive aspect is the Profit Before Tax (PBT) less Other Income, which has grown by 44.14% year on year, reaching Rs 508.87 crore. The near-term trend for PBT is also very positive. Similarly, the Profit After Tax (PAT) has also shown a growth of 38.5% year on year, reaching Rs 389.42 crore. The near-term trend for PAT is also positive.

On the other hand, the company's Dividend Payout Ratio (DPR) has been consistently high at 40.24% in the last five years. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders.

However, one area of concern for M & M Fin. Serv. is its Operating Cash Flow, which has been consistently falling in the last three years, reaching a low of Rs -18,448.55 crore. This indicates that the company's cash revenues from business operations are declining.

Overall, Mahindra & Mahindra Financial Services has shown a positive financial performance in the quarter ending September 2024. However, investors should keep an eye on the company's operating cash flow in the coming quarters to ensure sustainable growth. MarketsMOJO has given a 'Sell' call for the company's stock based on its financial performance.