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Mahindra
and Mahindra Financial Services (MMFSL), on a consolidated basis, has reported 55%
decline in the net profit to Rs 490.38 crore in the quarter ended September 2022
(Q2FY2023) over net profit of Rs 1099.78 crore in Q2FY2022.
The
Income from Operations rose 1% to Rs 2848.32 crore, against the corresponding
previous year period. Other Income increased 37% to Rs 180.96 crore. As a
result, the total Income grew 3% to Rs 3029.28 crore.
Interest
expenses moved up 4% to Rs 1191.81 crore, while the operating expenses
increased 36% to Rs 863.16 crore leading the operating profits to decline -17% to
Rs 974.31 crore.
Depreciation
increased 60% to Rs 54.57 crore, while Provisions & write-off were at Rs 207.64
crore. PBT fell 51% to Rs 712.10 crore. There is exceptional expense item of Rs
56.06 crore leading to 56% dip in PBT after exceptional item to Rs 656.04 crore
in Q2FY2023.
The
effective tax rates stood at 24.7% in Q2FY2023 compared with 26.5% in Q2FY2022.
Net Profit declined -55% to Rs 490.38 crore Q2FY2023 after minority interest and
share of profit from associate companies in over Q2FY2022.
Business highlights
Loan Book increased by
9.0% to Rs 73817 crore compared to Q1FY23 aided by increase in disbursements.
Disbursement for the quarter at Rs 11824 crore was up 83% on YoY basis.
GS 3 substantially
improved to 6.7% from 8.0% last quarter (Q1FY23), supported by focused
collection initiatives, timely settlements and macro tailwinds.
Net Interest Margin for
the quarter was healthy at 7.5%. Net Interest Income (NII) at Rs 1540 crore was
up 2% YoY.
The Company’s Capital
Adequacy stood at a healthy 23.8%. Provision coverage on Stage 3 loans was
maintained at 58.2%.
As of September end,
the Company carried a total liquidity buffer of approximately Rs 10600 crore -
covering more than 3.5 months’ obligations.
During Q2FY2023
and H1FY2023, the Company has made a provision, considered as Exceptional Item,
of Rs 56 crore towards impairment of assets pertaining to its subsidiary in Sri
Lanka, Mahindra Ideal Finance (MIFL) based on assessment of the evolving
economic crisis and its effect on currency devaluation. During the
corresponding period last year, the Company increased its shareholding in MIFL
from 38.2% to 58.2%. This stake increase had resulted in revaluation of its
existing equity stake in MIFL, which led to a one-time revaluation gain of Rs 21
crore, which is shown as Exceptional Item in the quarter and half-year FY22
consolidated financials.
The company continues
to maintain leadership position in financing of Tractor and Mahindra Auto
segment. With evolving segment and customer mix, the company expects to
maintain quality growth. The company are witnessing strong demand in the
Tractor segment, aided by above average monsoon conditions and continued
spending by government on rural projects. Increasing penetration in the used
vehicles financing continues to be focus area to help improve margins.
The SME asset book
which is over Rs 3600 crore has grown 30% sequentially and contributes 5% of
the Business Assets.
The Company continues
to invest in digitization, partnerships and transformation projects. Recently,
the Company entered into a partnership with India Post Payment Bank (IPPB) to
enhance distribution and increase touch points for collections.
Subsidiaries
Mahindra Rural
Housing Finance (MRHFL)
During Q2FY2023, MRHFL
registered income at Rs 328 crore as against Rs 361 crore during the
corresponding quarter last year, a decline of 9% over the same period previous
year. The Profit After Tax (PAT) registered was Rs 31.1 crore during Q2FY2023,
as against Rs 46.7 crore during the corresponding quarter last year.
Mahindra Insurance
Brokers (MIBL)
During Q2FY2023, MIBL
registered income at Rs 94 crore as against Rs 77 crore during the
corresponding quarter last year, a growth of 22% over the same period previous
year. The Profit After Tax (PAT) registered was Rs 6.1 crore during Q2FY2023,
as against Rs 9.8 crore during the corresponding quarter last year, a de-growth
of 37% over the same period previous year.
Mahindra Manulife
Investment Management (MMIMPL)
During Q2FY2023, MMIMPL
earned total income of Rs 10.1 crore as compared to Rs 8.6 crore in the same
period previous year. MMIMPL incurred a loss of Rs 7.7 crore compared to a loss
of Rs 10.8 crore during the same period previous year.
The Average Assets
under Management (AUM) of MMIMPL for Q2FY2023, was Rs 9171 crore across 19
schemes, an increase of 37% over the same period previous year. Of these
assets, the Company managed Rs 7169 crore of average equity assets in Q2FY2023,
a growth of 91% compared to Rs 3762 crore in the same period last year.
Mahindra Manulife
Trustee (MMTPL)
During Q2FY2023, MMTPL
earned total income of Rs 0.2 Crore maintaining the same level as in the
corresponding previous year. MMTPL’s profit for the current as well as the
previous year September quarter remained static at Rs 0.1 Crore.
Mahindra Ideal
Finance (MIFL)
During Q2FY2023,
MIFL registered income of LKR 460.4 million as against LKR 284.6 million during
the corresponding quarter last year, registering a growth of 62% over the same
period previous year. The Profit After Tax (PAT) during Q2FY2023, was LKR 18.2
million as against LKR 59.3 million during the corresponding quarter last year,
a decline of 69% over the same period previous year.
Mahindra
Finance USA, LLC (MFUSA)
During Q2FY2023,
MFUSA registered income at US$ 15.5 Million as against US$ 14.5 Million during
the corresponding quarter last year, registering an increase of 7% over the
same period previous year. The Profit After Tax (PAT) during Q2FY2023,
registered was US$ 3.9 Million as against US$ 4.7 Million during the
corresponding quarter last year, registering a decline of 17% over the same
period previous year.
Financial Performance H1FY2023:
For the
half year ended September 2021 (H1FY2023), MMFSL reported 6% rise in the Income
from Operations to Rs 5614.24 crore, against the corresponding previous year
period. Other Income increased 40% to Rs
328.99 crore. As a result, the total Income grew 8% to Rs 5943.23 crore.
Interest
expenses declined 2% to Rs 2243.93 crore, while the operating expenses
increased 43% to Rs 1666.08 crore leading the operating profits to decline -1% to
Rs 2033.22 crore.
Depreciation
increased 46% to Rs 97.94 crore, while Provisions & write-off declined 66% to
Rs 916.44 crore. PBT rebounded to Rs 1018.84 crore in H1FY2023 from loss of Rs
702.14 crore in H1FY2022. There is exceptional expense item of Rs 56.06 crore in
H1FY2023 compared to exceptional income item of Rs 20.57 crore in H1FY2022.
The
effective tax rates stood at 25.0% in H1FY2023 compared with 26.0% in H1FY2022.
Net Profit rebounded to Rs 729.64 crore in H1FY2023 from net loss of Rs 473.94
crore H1FY2022.
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Mahindra & Mahindra Financial
Services: Consolidated Results
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Particulars
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Income from operations
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2848.32
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2818.04
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1
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5614.24
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5283.26
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6
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10858.08
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11703.79
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-7
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Other Income
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180.96
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132.54
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37
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328.99
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234.16
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40
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542.43
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466.71
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16
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Total Income
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3029.28
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2950.58
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3
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5943.23
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5517.42
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8
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11400.51
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12170.50
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-6
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Interest Expenses
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1191.81
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1142.63
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4
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2243.93
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2293.71
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-2
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4417.37
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5307.57
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-17
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Operating Expense
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863.16
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633.18
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36
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1666.08
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1169.05
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43
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2656.94
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2047.62
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30
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Gross Profits
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974.31
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1174.77
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-17
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2033.22
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2054.66
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-1
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4326.20
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4815.31
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-10
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Depreciation / Amortization
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54.57
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34.21
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60
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97.94
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66.97
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46
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151.99
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150.51
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1
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Provisions and write off
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207.64
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-315.54
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-166
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916.44
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2689.83
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-66
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2690.38
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3998.74
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-33
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PBT before EO
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712.10
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1456.10
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-51
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1018.84
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-702.14
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-245
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1483.83
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666.06
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123
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Extra ordinary item (EO)
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-56.06
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20.57
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-373
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-56.06
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20.57
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-373
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20.57
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228.54
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-91
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PBT after EO
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656.04
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1476.67
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-56
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962.78
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-681.57
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-241
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1504.40
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894.60
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68
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Tax Expense
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175.85
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385.20
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-54
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254.43
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-182.75
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-239
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399.08
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153.86
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159
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Net Profit
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480.19
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1091.47
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-56
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708.35
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-498.82
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-242
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1105.32
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740.74
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49
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Minority Interest
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1.66
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3.16
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-47
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2.26
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3.48
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-35
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13.47
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7.07
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91
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P&L of Assosiate Co.
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11.85
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11.47
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3
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23.55
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28.36
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-17
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45.02
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39.54
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14
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PAT
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490.38
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1099.78
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-55
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729.64
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-473.94
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-254
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1136.87
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773.21
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47
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EPS (Rs)*
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17.2
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35.2
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12.5
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-7.9
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9.1
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4.7
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Adj BV (Rs)
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113.1
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80.5
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113.1
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80.5
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110.1
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102.6
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*Annualized on current equity of
Rs 246.62 core excluding EO and relvant tax. Face Value: Rs 2, Figures in Rs
crore
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Source: Capitaline Corporate
Database
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