The credit cost for the company rose to 222 bps (annualized) in Q3FY2020 compared with 220 bps in preceding quarter and 155 bps in the corresponding quarter last year. The net interest margin (NIM), on calculated basis, of the company improved on sequential basis to 8.33% in Q3FY2020 from 8.04% in the previous quarter, but declined from 9.13% in the corresponding quarter last year.

Income from Operations increased 13% to Rs 2932.12 crore during the quarter ended December 2019, compared to the corresponding previous year quarter. Other Income jumped 32% to Rs 162.09 crore. The total Income moved up 14% to Rs 394.21 crore, while interest expenses increased 17% to Rs 1351.41 crore in the quarter ended December 2019.

The staff cost moved up 8% to Rs 402.01 crore, while other operating expenses declined 5% to Rs 248.60 crore. The ensuing operating profit improved 18% to Rs 1092.19 crore in the quarter ended December 2019.

Depreciation surged 122% to Rs 43.23 crore during the quarter under review. Provisions & write-off jumped 72% to Rs 420.21 crore. The profit before tax declined 5% to Rs 628.76 crore.

After accounting for 40% decline in taxation to Rs 153.91 crore, net profits after minority interest increased 18% to Rs 471.65 crore in the quarter ended December 2019.

On a standalone basis, total Income increased 16% at Rs 2580.60 crore during the quarter ended December 2019, as against Rs 2230.40 crore in the corresponding period last year. The net profit improved 15% to Rs 365.30 crore during the quarter ended December 2019, as compared to Rs 318.70 crore during the corresponding period last year.

Standalone AUM of the company increased 12% to Rs 65494 crore at end December 2019. MMFSL currently has a network of 1326 offices spread across 25 states and 5 union territories. The company's customer base has increased to 6.68 million customers at end December 2019. The disbursements of Mahindra Finance have declined 4% to Rs 12781.1 crore in the quarter ended December 2019.

The disbursements of the company on consolidated basis fell 2% to Rs 13218.2 crore in the quarter ended December 2019. Consolidated AUM increased 20% to Rs 75884 crore end December 2019.

Book value of the company on standalone basis stood at Rs 180.1 per share and adjusted book value stood at Rs 108.0 per share end December 2019. Book value of the company on consolidated basis stood at Rs 188.5 per share and adjusted book value stood at Rs 103.7 per share end December 2019.

Asset Quality

GNPA rose to 7.60% of total asset at end December 2019 from 7.20% a quarter ago. NNPA ratio also moved up to 6.00% on sequential basis from 5.80% a quarter ago. NPA coverage ratio improved to 22.90% at end December 2019 from 19.50% at end December 2018.

Mahindra Insurance Brokers (MIBL)

During the quarter ended December 2019, MIBL registered income at Rs 91.2 crore as against Rs 81.8 crore, registering a growth of 11% over the same period previous year. The Profit After Tax (PAT) registered was Rs 16.1 crore as against Rs 18.2 crore, registering a decline of 12% over the same period previous year.

Mahindra Rural Housing Finance (MRHFL)

During the quarter ended December 2019, MRHFL disbursed Rs 437.1 crore as against Rs 174.8 crore during the same period previous year, registering a growth of 150% over the same period previous year. MRHFL registered income at Rs 393.6 crore as against Rs 393.3 crore. The Profit After Tax (PAT) registered a rowth of 17% at Rs 90.6 crore as against Rs 77.6 crore for the same period previous year.

Mahindra Asset Management Company (MAMCPL)

During the quarter ended December 2019, MAMCPL earned revenues of Rs 4.7 crore as compared to Rs 4.4 crore in the same period previous year. The company incurred a loss of Rs 10.4 crore compared to a loss of Rs 14.0 crore during the same period previous year.

During the nine-months period ended December 2019, MAMCPL earned revenues of Rs 13.1 crore as compared to Rs 23.6 crore in the same period previous year. The company incurred a loss of Rs 27.8 crore compared to a loss of Rs 31.8 crore during the same period previous year. The Average Assets under Management of MAMCPL for the quarter ended December 2019 was Rs 5258 crore across thirteen schemes which showed a growth of 40% over the same period previous year. Of these assets, MAMCPL managed Rs 1641 crore of average equity assets in the quarter ended December 2019 which compared to Rs 1310 crore in the same quarter last year.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended December 2019, MFUSA registered income at USD 17.2 million as against USD 16.9 million, registering a growth of 2% over the same period previous year. The Profit Before Tax (PBT) during the quarter ended December 2019, registered was USD 4.7 million as against USD 3.3 million, registering a growth of 42% over the same period previous year. The Profit After Tax (PAT) during the quarter ended December 2019, registered was USD 3.7 million as against USD 2.5 million, registering a growth of 48% over the same period previous year.

During the nine-month period ended December 2019, MFUSA registered income at USD 52.2 million as against USD 50.4 million, registering a growth of 4% over the same period previous year. The Profit Before Tax (PBT) during the nine months' period ended December 2019, registered was USD 14.3 million as against USD 13.6 million, registering a growth of 5% over the same period previous year. The Profit After Tax (PAT) during the nine months' period ended December 2019, registered was USD 10.9 million as against USD 10.4 million, registering a growth of 5% over the same period previous year.

Financial Performance 9MFY2020:

For the nine-months ended December 2019 (9MFY2020), MMFSL reported 17% rise in the Income from Operations to Rs 8467.99 crore. Other Income increased 22% to Rs 425.90 crore. As a result, the total Income grew 18% to Rs 8893.88 crore. Interest expenses moved up 25% to Rs 3959.91 crore, while the operating expenses increased 17% to Rs 2013.38 crore. The operating profits increased 9% to Rs 2920.59 crore. Depreciation increased 136% to Rs 127.87 crore, while provisions & write-off jumped 80% to Rs 1497.07 crore. PBT dipped 28% to Rs 1295.64 crore. The effective tax rates stood at 34.6% in 9MFY2020 compared with 35.2% in 9MFY2019. Net Profit after minority interest declined 26% to Rs 840.33 crore in 9MFY2020 over 9MFY2019.