M&M Financials slumps into red

M&M Financials is currently amongst the top losers on the BSE, down almost 4% at Rs.244, with an intra day low at Rs.232.35.

The stock has slumped after the company, for Q3FY14, reported a much worsening asset quality and higher provisioning. Its net profit fell 18% to Rs.164 crore and this was due to a 120% (YoY) and 42% QoQ rise in provisioning and write-offs at Rs.180 crore. The company has stated that cash flow of borrowers in South India was impacted and this resulted in delayed payment./ Consequently, this led to a rise in NPAs – gross NPA rose from 4.1% to 4.7% (QoQ).