Shares of non-bank financial institution Mahindra & Mahindra Financial Services (MMFS) jumped to a 52-week high after the company reported a 75% year-on-year increase in overall spending in August.

In an exchange filing last week, the company mentioned that it paid Rs 3,740 crore in August. However, on a sequential basis, the number declined by 4.4%. The figure was also lower than expenditures in July (Rs 3,912 crore) and June (Rs 3,750 crore).

Total expenditure for the year is now at Rs 17,150 crore (including August), almost doubling compared to the same period last year. Total commercial assets increased by approximately 12% from last year and 3% sequentially.

Collection Efficiency (CE) was stable at 96% in August compared to 97% in August 2021. The number has fluctuated between 95-97% over the past four months.

M&M Finance also mentioned that its Phase 2 assets, or assets more than 60 days past due, fell from the previous month, while its Gross Non-Performing Assets (GNPA) or Phase 3 assets remained stable in August.

“The company expects to see an improvement in Phase II and Phase III assets during September 2022,” it said in its exchange filing.

In an interview with CNBC-TV18 last month, Ramesh Iyer, vice chairman and general manager, said spending has started to grow, leading to an increase in AUM. “We’re close to 26%, and it’s only now that we’re starting to see good growth in spending leading to AUM growth. When we start to consume that capital and return on assets (RoA), you’re going to see that happen in the next pair.”

Shares of M&M Financial Services were up 3.3% at Rs 215.85 in early trade. The stock was F&O’s biggest gainer and also traded at a new 52-week high. The stock is up 42% so far this year.