The credit cost for the company jumped to 379 bps (annualized) in Q1FY2020 from 235 bps in the corresponding quarter last year.

The net interest margin (NIM), on calculated basis, of the company declined to 8.73% in Q1FY2020 compared with 9.10% in the corresponding quarter last year.

Income from Operations increased 23% to Rs 2821.88 crore during the quarter ended June 2019, compared to the corresponding previous year quarter. Other Income jumped 32% to Rs 29.83 crore. The total Income moved up 23% to Rs 2851.71 crore.

The interest expenses increased 32% to Rs 1262.60 crore in the quarter ended June 2019. The staff cost moved up 37% to Rs 472.53 crore, while other operating expenses increased 45% to Rs 238.28 crore. The ensuing operating profit rose mere 3% to Rs 878.30 crore in the quarter ended June 2019.

Depreciation surged 156% to Rs 41.44 crore during the quarter under review. Provisions & write-off galloped 96% to Rs 676.91 crore. The profit before tax declined 67% to Rs 159.95 crore. After accounting for taxation of Rs 51.49 crore, net profit plunged 66% to Rs 108.46 crore in the quarter ended June 2019.

On a standalone basis, total Income increased 24% at Rs 2394.0 crore during the quarter ended June 2019, as against Rs 1928.6 crore in the corresponding period last year. The net profit plunged 75% to Rs 68.4 crore during the quarter ended June 2019, as compared to Rs 269.1 crore during the corresponding period last year.

AUM of the company increased 21% to Rs 62396 crore at end June 2019. MMFSL currently has a network of 1334 offices. The company's customer base has crossed 6.28 million customers at end June 2019. The disbursements on standalone basis rose 3% to Rs 10598.3 crore, while on consolidated basis the disbursements were flat at Rs 11095.9 crore in the quarter ended June 2019. The consolidated AUM of the company increased 22% to Rs 71406 crore end June 2019.

Asset Quality

The Gross Stage 3 levels assets of the company increased to 7.40% end June 2019 from 5.90% a quarter ago. The Net Stage 3 assets ratio also moved up to 5.70% on sequential basis from 4.80% a quarter ago. NPA coverage ratio improved to 24.90% at end June 2019 from 19.20% at end June 2018.

Mahindra Insurance Brokers (MIBL)

During the quarter ended June 2019, MIBL registered income at Rs 79.6 crore as against Rs 66.7 crore, registering a growth of 19% over the same period previous year. The Profit After Tax (PAT) registered was Rs 6.2 crore as against Rs 14.8 crore, registering a dip of 58% over the same period previous year.

Mahindra Rural Housing Finance (MRHFL)

During the quarter ended June 2019, MRHFL disbursed Rs 497.6 crore as against Rs 777.9 crore during the same period previous year, registering a decline of -36% over the same period previous year.

MRHFL registered income at Rs 363.1 crore as against Rs 302 crore, registering a growth of 20% over the same period previous year. The Profit After Tax (PAT) declined 7% at Rs 28.8 crore as against Rs 30.9 crore for the same period previous year.

Mahindra Asset Management Company (MAMCPL)

During the quarter ended June 2019, MAMCPL earned revenues of Rs 4.14 crore as compared to Rs 9.41 crore in the same period previous year. The company incurred a loss of Rs 8.56 crore compared to a loss of Rs 6.22 crore over the same period previous year.

The Average Assets under Management (AUM) of MAMCPL increased 26% to Rs 4972 crore across nine schemes end June 2019. Of these assets, MAMCPL managed Rs 1513 crore of average equity assets in the quarter ended June 2019 compared to Rs 1264 crore in the same quarter last year.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended June 2019, MFUSA registered income at USD 16.69 Million as against USD 15.99 Million, registering a growth of 4% over the same period previous year. The Profit After Tax (PAT) during the quarter ended June 2019, registered was USD 3.90 Million as against USD 4.10 Million, a decline of 5% over the same period previous year.

Book value of the company on standalone basis stood at Rs 178.5 per share and adjusted book value stood at Rs 113.8 per share end June 2019. Book value on consolidated basis stood at Rs 184.9 per share and adjusted book value stood at Rs 103.2 per share end June 2019.

Annual Financial Performance:

For the year ended March 2019 (FY2019), MMFSL reported 32% rise on consolidated in the Income from Operations to Rs 10371.70 crore, while other Income increased 80% to Rs 106.08 crore. As a result, the total Income grew 32% to Rs 10477.78 crore. Interest expenses moved up 29% to Rs 4432.28 crore, while the operating expenses increased 29% to Rs 2412.10 crore. The operating profit jumped 38% to Rs 3633.40 crore. Depreciation increased 37% to Rs 75.53 crore, while provisions & write-off rose 6% to Rs 717.11 crore. PBT surged 49% to Rs 2840.76 crore. The effective tax rate stood at 34.3% in FY2019 compared with 36.1% in FY2018. Net Profit galloped 54% to Rs 1867.28 crore in FY2019 over FY2018.