Highlights:

• The company has taken additional provision of Rs 40 crore in Q2FY2020, looking at the prevailing environment.

• The company has witnessed an impact of Rs 104 crore on account of reversals of deferred tax assets in Q2FY2020.

• As per the company, the excess monsoon rainfall has led to loss of man days in UP, Bihar, MP, Maharashtra due to lower foot-falls at dealers place, while the overall auto and tractors industry has witnessed significant slowdown. The heavy commercial vehicle segment is under pressure and the company expects it to remain under pressure.

• The company expects the pre-owned segment to contribute to the growth, while volumes are expected to remain under pressure and upcoming festive season may provide some support.

• The company expects AUM growth at 15-20% for FY2020 to be driven by volume growth with multi-product and multi-dealer relationship. The company is not witnessing any competition in rural market and is gaining market share.

• The disbursements were in Q2FY2020, while the company expects some growth in disbursements in H2FY2020.

• The company expects the share of pre-owned vehicle would go up to 15%, while the yield on pre-owned vehicles is 4% percentages higher than new vehicles.

• The company has maintained collection efficiency at 95% in H1FY20 similar to H1FY19.

• The write-offs stood at Rs 383 crore in Q2FY2020 and Rs 474 crore in H1FY2020 across 10000 contracts.

• As per the company most of the NPAs are formed in H1, while there are recoveries ahead. However, the NPA formation has been lower in H1FY2020.

• The company expects the improve asset quality in H2FY2020, while the credit cost in H2FY2020 is expected to be lower than H1FY2020.

• The cost of ECB loans on a fully hedged basis is 8.2-8.3%.

• For Mahindra Rural Housing Finance, the GNPA for Maharashtra stands at 18% and rest of India is 8%.

• As per the company, its not in any hurry to raise capital.