Shares of Mahindra and Mahindra Financial Services (M&M Financial Services) crashed 14% and reached an intra-day low of Rs 237.35 on 30 October after the company reported weak Q2 earnings.

The financial services company reported a 47.6% year-on-year (YoY) decline in its net profit at Rs 235 crore for the quarter under review against Rs 448 crore reported in the year-ago quarter. The significant decline was due to an increase in impairment on financial instruments.

However, the company reported a 24.1% YoY increase in its revenue from operations at Rs 3,212 crore, which was due to growth in the asset book.

The net interest income of the company saw a 3% YoY increase to Rs 1,674 crore, and the net interest margin of the company was at 6.5% during the July-September quarter, which was impacted by higher borrowing rates that were aided by a change in portfolio mix in favour of better credit quality of customers.

The credit cost during the quarter under review was at Rs 627 crore against Rs 198 crore reported in the same quarter during the previous financial year.

The company also witnessed a sharp improvement in both Stage 2 and Stage 3, which led to a provision write-back of Rs 345 crore.

At 11:02 am, the shares of M&M Financial Services were trading 9.52% below at Rs 250.90 on NSE.