The credit cost for the company was steady on sequential basis jumped to 154 bps (annualized) in Q3FY2019 from 110 bps in the corresponding quarter last year. The net interest margin (NIM), on calculated basis, of the company declined to 8.27% in Q3FY2019 compared with 8.94% in the corresponding quarter last year.

Income from Operations increased 22% to Rs 2222.52 crore during the quarter ended December 2018, compared to the corresponding previous year quarter. Other Income dipped 69% to Rs 23.70 crore. The total Income moved up 18% to Rs 2246.22 crore, while interest expenses increased 25% to Rs 1018.52 crore in the quarter ended December 2018.

The staff cost moved up 33% to Rs 271.59 crore, while other operating expenses increased 42% to Rs 196.53 crore. The ensuing operating profit rose 3% to Rs 759.58 crore in the quarter ended December 2018.

Depreciation increased 42% to Rs 15.17 crore during the quarter under review. Provisions & write-off surged 83% to Rs 224.71 crore. The profit before tax declined 14% to Rs 519.70 crore. An effective tax rate increased to 38.7% causing 20% decline in the net profits to Rs 318.65 crore in the quarter ended December 2018.

AUM of the company, on consolidated basis, increased at accelerated pace of 30% to Rs 63073 crore at end December 2018. On standalone basis, AUM of the company increased 30% to Rs 58240 crore at end December 2018.

MMFSL currently has a network of 1313 offices. The company's customer base has crossed 5.91 million customers at end December 2018. The disbursements of Mahindra Finance have posted healthy growth of 24% to Rs 13290.4 crore in the quarter ended December 2018.

Asset Quality

The Gross Stage 3 levels have declined to 7.7% for the quarter ended December 2018 from 9% a quarter ago and 12.3% a year ago. The Net Stage 3 levels have gone down to 5.8% for the quarter ended September 2018 from 6.0% a quarter ago and 8.2% a year ago. The Stage 3 provisioning coverage ratio stood at 26.9%.

Mahindra Insurance Brokers (MIBL)

During the quarter ended December 2018, MIBL registered income at Rs 81.8 crore as against Rs 128.7 crore, registering a decline of 36% over the same period previous year. The Profit After Tax (PAT) registered was Rs 18.2 crore as against Rs 22.9 crore, registering a dip of 21% over the same period previous year. Net premium dipped 22% to Rs 430 crore in Q3FY2019.

Mahindra Rural Housing Finance (MRHFL)

During the quarter ended December 2018, MRHFL disbursed Rs 174.9 crore as against Rs 596.3 crore during the same period previous year, registering a dip of 71% over the same period previous year. MRHFL registered income at Rs 393.3 crore as against Rs 557 crore, registering a decline of 29% over the same period previous year. The Profit After Tax (PAT) registered a decline of 18% at Rs 77.6 crore as against Rs 94.1 crore for the same period previous year. The Total Assets Under Management (AUM) stood at Rs 7301 crore end December 2018.

Mahindra Asset Management Company (MAMCPL)

During the quarter ended December 31, 2018, MAMCPL earned revenues of Rs 4.4 crore as compared to Rs 6.4 crore in the same period previous year. The company incurred a loss of Rs 14.08 crore compared to a loss of Rs 6.5 crore during the same period previous year. The Average Assets under Management (AUM) of MAMCPL for the quarter ended December 2018 was Rs 3756 crore across eight schemes which showed a growth of 34% over the same period previous year. Of these assets, MAMCPL managed Rs 1310 crore of average equity assets in the quarter ended December 2018 which compared to Rs 735 crore in the same quarter last year. The number of client accounts increased to 150,326 as on 31 December 2018 of which 43,163 were investing via Systematic Investment Plans.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended December 2018, MFUSA registered income at US$ 16.9 million as against US$ 14.3 million, registering a growth of 18 % over the same period previous year. The Profit After Tax (PAT) registered was US$ 2.5 million as against US$ 1.5 million, registering a growth of 67% over the same period previous year.

Book value of the company stood at Rs 167.7 per share on a standalone basis at end December 2018. Adjusted book value (net of net Stage 3 loans) stood at Rs 107.4 per share on standalone basis at end December 2018.

YTD Financial Performance

For the nine-months ended December 2018 (9MFY2019), MMFSL reported 29% rise in the Income from Operations to Rs 6251.63 crore, against the corresponding previous year period. Other Income declined 25% to Rs 82.64 crore. The total Income grew 28% to Rs 6334.27 crore. Interest expenses moved up 22% to Rs 2803.94 crore, while the operating expenses increased 28% to Rs 1250.05 crore. The operating profits surged 37% to Rs 2280.28 crore. Depreciation increased 32% to Rs 42.92 crore, while Provisions & write-off jumped 58% to Rs 749.66 crore. PBT moved up 29% to Rs 1487.70 crore. The effective tax rates stood at 34.9% in 9MFY2019 compared with 34.0% in 9MFY2018. Net Profit improved 27% to Rs 969.10 crore in 9MFY2019 over 9MFY2018.