The credit cost for the company eased to 563 bps (annualized) in Q4FY2021 compared with 886 bps in preceding quarter, while rose from 483 bps in the corresponding quarter last year.

The net interest margin (NIM), on calculated basis, of the company improved to 9.31% in Q4FY2021 compared with 8.21% in the corresponding quarter last year.

Income from Operations declined 3% to Rs 2895.50 crore during the quarter ended March 2021, compared to the corresponding previous year quarter. Other Income fell 5% to Rs 142.87 crore. The total Income eased 3% to Rs 3038.37 crore, while interest expenses dipped 14% to Rs 1226.11 crore in the quarter ended March 2021.

The staff cost moved up 24% to Rs 397.82 crore, while other operating expenses declined 9% to Rs 226.24 crore. The ensuing operating profit improved 4% to Rs 1188.20 crore in the quarter ended March 2021.

Depreciation surged 92% to Rs 36.55 crore during the quarter under review. Provisions & write-off moved up 11% to Rs 910.08 crore.

The profit before tax declined 19% to Rs 241.57 crore. After accounting for taxation of Rs 36.81 crore, net profits declined 8% to Rs 216.34 crore in the quarter ended March 2021.

On a standalone basis, total Income fell 1% at Rs 2599.80 crore during the quarter ended March 2021, as against Rs 2636.90 crore in the corresponding period last year. The net profit dipped 32% to Rs 149.80 crore during the quarter ended March 2021, as compared to Rs 220.90 crore during the corresponding period last year.

MMFSL currently has a network of 1388 offices. The company's customer base has crossed 7.31 million customers at end March 2021.

The disbursements of Mahindra Finance fell 15% to Rs 5970 crore in the quarter ended March 2021. The disbursements of the company on consolidated basis dipped 34% to Rs 6394 crore in the quarter ended March 2021.

AUM of the company declined 8% to Rs 59947 crore at end March 2021.

The Standalone Assets Under Management (AUM) comprising loan assets and investments stood at Rs 81,689 crore end March 2021, as against Rs 77,160 crore as on the corresponding date last year, registering a growth of 6%.

Asset Quality

GNPA dipped to 8.96% of total asset at end March 2021 from 9.99% a quarter ago. NNPA ratio also declined to 3.97% on sequential basis from 6.57% a quarter ago. NPA coverage ratio improved to 57.90% at end March 2021 from 36.60% at end March 2020.

Book value of the company on standalone basis stood at Rs 119.4 per share and adjusted book value stood at Rs 99.7 per share end March 2021. Book value of the company on consolidated basis stood at Rs 128.1 per share and adjusted book value stood at Rs 102.6 per share end March 2021.

Mahindra Insurance Brokers (MIBL)

During the quarter ended March 2021, MIBL registered income at Rs 86.0 crore as against Rs 87.9 crore, registering a decline of 2% over the same period previous year. The Profit after Tax (PAT) registered was Rs 12.0 crore as against Rs 20.4 crore, registering a dip of 41% over the same period previous year.

Mahindra Rural Housing Finance (MRHFL)

During the quarter ended March 2021, MRHFL disbursed Rs 424 crore as against Rs 411.2 crore during the same period previous year, registering a growth of 3% over the same period previous year. MRHFL registered income at Rs 338 crore as against Rs 400.5 crore, registering a dip of 16% over the same period previous year. The Profit after Tax (PAT) registered a growth of 6900% at Rs 35 crore as against Rs 0.5 crore for the same period previous year.

The GNPA of the company declined to 13.16% end March 2021 from 14.87 a quarter ago, while the NNPA of the company eased to 9.87% end March 2021 from 10.73% a quarter ago.

Mahindra Manulife Investment Management (MMIMPL)

During the quarter ended March 2021, MMIMPL earned total income of Rs 8.4 crore as compared to Rs 3.8 crore in the same period previous year. The company incurred a loss of Rs 9 crore compared to a loss of Rs 10.1 crore during the same period previous year.

During the financial year ended March 31, 2021, MMIMPL earned total income of Rs 30.5 crore as compared to Rs 17 crore in the same period previous year. The company incurred a loss of Rs 26.7 crore compared to a loss of Rs 37.9 crore during the same period previous year.

The Average Assets under Management (AUM) of MMIMPL for the quarter ended March 2021 was Rs 5271 crore across 16 schemes which showed a decline of 2.3% over the same period previous year. Of these assets, the Company managed Rs 2478 crore of average equity assets in the quarter year ended March 2021 compared to Rs 1781 crore in the same period last year.

Mahindra Manulife Trustee (MMTPL)

During the quarter ended March 2021, MMTPL earned total income of Rs 0.14 crore compared to Rs 0.06 crore during the same period previous year. The company posted a profit of Rs 0.04 crore compared to a profit of Rs 0.02 crore during the same period previous year.

During the financial year ended March 31, 2021, MMTPL earned total income of Rs 0.36 crore compared to Rs 0.22 crore during the same period previous year. The company incurred a loss of Rs 0.01 crore compared to a loss of Rs 0.02 crore during the same period previous year.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended March 2021, MFUSA registered income at US$ 14.4 Million as against US$ 16.6 Million during the corresponding quarter last year, registering a decline of 13% over the same period previous year. The Profit Before Tax (PBT) during the quarter ended March 2021, registered was US$ 6.7 Million as against Loss before tax of US$ 0.9 Million during the corresponding quarter last year, registering a growth of 844% over the same period previous year. The Profit After Tax (PAT) during the quarter ended March 2021, registered was US$ 4.9 Million as against Loss after tax of US$ 1.2 Million during the corresponding quarter last year, registering a growth of 508% over the same period previous year.

Ideal Finance (IFL)

During the quarter ended March 2021, IFL registered income at LKR 277.0 Million as against LKR 233.0 Million during the corresponding quarter last year, registering a growth of 19% over the same period previous year. The Profit before Tax (PBT) registered during the quarter ended March 2021, was LKR 100.3 Million as against LKR 45.9 Million during the corresponding quarter last year, registering a growth of 118% over the same period previous year. The Profit after Tax (PAT) during the quarter ended March 2021, was LKR 55.1 Million as against LKR 25.5 Million during the corresponding quarter last year, a growth of 116% over the same period previous year.

Financial Performance FY2021:

For the year ended March 2021 (FY2021), MMFSL reported 2% rise in the Income from Operations to Rs 11703.79 crore, against the corresponding previous year period. Other Income declined 13% to Rs 466.71 crore. As a result, the total Income grew 1% to Rs 12170.50 crore. Interest expenses fell 2% to Rs 5307.57 crore, while the operating expenses dipped 21% to Rs 2047.62 crore leading the operating profits to jump 20% to Rs 4815.31 crore. Depreciation increased 2% to Rs 150.51 crore, while Provisions & write-off zoomed 72% to Rs 3998.74 crore. PBT dipped 57% to Rs 666.06 crore. The effective tax rates stood at 23.1% in FY2021 compared with 33.2% in FY2020. Net Profit declined 28% to Rs 773.21 crore in FY2021 over FY2020.