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Mahindra and Mahindra Financial Services
(MMFSL), on a consolidated basis, has reported 9% increase in the net profit to
Rs 681.33 crore in the quarter ended March 2023 (Q4FY2023). With the improved
collection performance, the company has improved asset quality and margins. The
credit cost also declined sharply boosting the earnings of the company in
Q4FY2023.
The credit cost for the company dipped to 41 bps
(annualized) in Q4FY2023 compared with 94 bps in preceding quarter and 80 bps
in the corresponding quarter last year. The net interest margin (NIM), on
calculated basis, of the company eased to 8.05% in Q4FY2023 compared with 9.31%
in the corresponding quarter last year.
Income from Operations increased 20% to Rs 3281.73
crore during the quarter ended March 2023, compared to the corresponding
previous year quarter. Other Income jumped 51% to Rs 254.62 crore. The total
Income moved up 22% to Rs 3536.35 crore, while interest expenses increased 40% to
Rs 1477.40 crore in the quarter ended March 2023.
The staff cost moved up 33% to Rs 599.23 crore, while
other operating expenses increased 11% to Rs 389.22 crore. The ensuing
operating profit improved 3% to Rs 1070.50 crore in the quarter ended March
2023.
Depreciation rose 31% to Rs 64.98 crore during
the quarter under review. Provisions & write-off declined 35% to Rs 84.05 crore.
The profit before tax increased 7% to Rs 921.47 crore. After accounting for
taxation of Rs 258.97 crore, net profits increased 9% to Rs 681.33 crore in the
quarter ended March 2023.
On a standalone basis, total Income increased 23%
at Rs 2994.00 crore during the quarter ended March 2023, as against Rs 2442.00 crore
in the corresponding period last year. The net profit improved 14% to Rs 684.00
crore during the quarter ended March 2023, as compared to Rs 601.00 crore
during the corresponding period last year.
Business
highlights and asset quality
Disbursement in Q4FY2023 at Rs 13778
crore was up 50% on YoY basis. Consequently, the Loan Book increased by 27% to
Rs 82770 crore on YoY basis. The annual disbursement of Rs 49541 crore
registered a growth of 80%.
GS-3 improved to 4.5% from 5.9% in Q3
FY23, supported by focused collection initiatives and macro tailwinds.
Provision coverage on Stage-3 loans was maintained at 59.5%.
The Company’s Capital Adequacy was
healthy at 22.5%.
As at March end, the Company carried a
total liquidity buffer of approximately Rs 10400 crore - covering more than 3
months’ obligations.
Subsidiaries
Mahindra Rural Housing Finance (MRHFL)
Total Income increased by 7% to Rs 355
crore in Q4FY2023, as against Rs 330 crore for the corresponding quarter last
year. The Loss (after tax) was at Rs 26 crore against Loss (after tax) of Rs 0.5
crore during the corresponding quarter last year.
Total Income declined by 2% to Rs 1350
crore in FY2023 as against Rs 1377 crore in FY2022. The Profit after tax at Rs 22
crore declined 54% over last year which reported a Profit after Tax of Rs 48
crore.
The GS-3 and NS-3 as at March end were
reported at 10.5% and 7.8% compared to 11.3% and 8.5% respectively as at March
end last year.
Mahindra Insurance Brokers (MIBL)
Total Income increased by 6% to Rs 121
crore in Q4FY2023, as against Rs 114 crore for the corresponding quarter last
year. The Profit after Tax was at Rs 13 crore against Rs 21 crore during the
corresponding quarter last year, a decline of 38%.
Total Income increased by 23% to Rs 427
crore during the current financial year as against Rs 348 crore last year. The
Profit after tax at Rs 34 crore declined 34% over last year which reported a
Profit after Tax of Rs 52 crore.
Mahindra Manulife Investment
Management (MMIMPL)
Total Income was reported at Rs 14 crore
in Q4FY2023, as against Rs 9 crore for the corresponding quarter last year. The
Loss (after Tax) was at Rs 5 crore as against Loss (after tax) of Rs 13 crore
during the corresponding quarter last year.
Total income was reported at Rs 44 crore
during the current financial year as compared to Rs 35 crore last year. The
Loss (after tax) for the year was at Rs 31 crore compared to a Loss (after tax)
of Rs 38 crore during last previous year.
The Average Assets under Management
(AUM) of MMIMPL in Q4FY2023 end March 2023 were reported at Rs 9,821 crore
across 20 schemes, a YoY growth of 12%. Equity assets comprised 84% of the AUM
compared to 66% last year.
Mahindra Manulife Trustee (MMTPL)
Total income was reported at of Rs 0.1
Crore in Q4FY2023 compared to Rs 0.2 Crore during the corresponding quarter
last year. The company was at a no profit / no loss position during the current
year quarter compared to a profit of Rs 0.1 Crore during the same period
previous year.
During the financial year, MMTPL earned
total income of Rs 0.8 Crore and posted a profit of Rs 0.2 Crore maintaining
the same level as in the previous year.
Mahindra Ideal Finance (MIFL)
During the 4th quarter, the macro
environment stabilized a bit, with exchange rate improving and interest rates
showing early signs of easing. MIFL registered income at LKR 576 Million as
against LKR 427 Million during the corresponding quarter last year, registering
a growth of 35% over the same period previous year. The Profit after Tax during
the quarter was LKR 40 Million as against LKR 44 Million during the
corresponding quarter last year, a de-growth of 10%.
During FY2023, MIFL registered income at
LKR 1924 Million as against LKR 1322 Million during the corresponding period
last year, registering a growth of 46%. The Profit after Tax (PAT) during FY2023,
was LKR 87 Million as against LKR 239 Million during the corresponding period
last year, a de-growth of 64%.
Mahindra Finance USA (MFUSA)
During the quarter ended March 31, 2023,
MFUSA registered income at USD 18 Million as against USD 14 Million during the
corresponding quarter last year, registering a growth of 29%. The Profit after
Tax registered was USD 3.7 Million as against Profit after tax of USD 3.4
Million during the corresponding quarter last year, registering a growth of 9%.
During FY2023, MFUSA registered income at USD 64.8 Million as against
USD 57.4 Million, registering a growth of 13%. The Profit after Tax registered
was USD 15 Million as against USD 17.4 Million, a decline of 14% over the same
period previous year.
Financial Performance FY2023:
For the year ended March
2023 (FY2023), MMFSL reported 11% rise in the Income from Operations to Rs 12029.51
crore, against the corresponding previous year period. Other Income increased 58%
to Rs 858.95 crore. As a result, the total Income grew 13% to Rs 12888.46 crore.
Interest expenses moved up 15% to Rs 5094.30 crore, while the operating
expenses increased 34% to Rs 3569.11 crore leading the operating profits to
decline 2% to Rs 4225.05 crore. Depreciation increased 49% to Rs 225.96 crore,
while Provisions & write-off dipped 56% to Rs 1182.59 crore. PBT jumped 90%
to Rs 2816.50 crore. After negative exception item of Rs 56.06 crore, the PBT
increased 83% to Rs 2760.44 crore. An effective tax rates stood at 26.5% in
FY2023 compared with 26.5% in FY2022. Net Profit increased 82% to Rs 2072.40 crore
in FY2023 over FY2022
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Mahindra & Mahindra
Financial Services: Consolidated Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Income from
operations
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3281.73
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2729.23
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20
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12029.51
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10858.08
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11
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Other Income
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254.62
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168.21
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51
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858.95
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542.43
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58
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Total Income
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3536.35
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2897.44
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22
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12888.46
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11400.51
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13
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Interest Expenses
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1477.40
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1052.94
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40
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5094.30
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4417.37
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15
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Operating Expense
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988.45
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802.22
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23
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3569.11
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2656.94
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34
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Gross Profits
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1070.50
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1042.28
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3
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4225.05
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4326.20
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-2
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Depreciation /
Amortization
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64.98
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49.65
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31
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225.96
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151.99
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49
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Provisions and
write off
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84.05
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130.25
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-35
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1182.59
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2690.38
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-56
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PBT before EO
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921.47
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862.38
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7
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2816.50
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1483.83
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90
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Extra ordinary
item (EO)
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0.00
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0.00
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-
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-56.06
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20.57
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-373
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PBT after EO
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921.47
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862.38
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7
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2760.44
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1504.40
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83
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Tax Expense
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258.97
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239.96
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8
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732.56
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399.08
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84
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Net Profit
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662.50
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622.42
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6
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2027.88
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1105.32
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83
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Minority Interest
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-6.41
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4.73
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LP
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-1.20
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13.47
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-109
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P&L of
Assosiate Co.
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12.42
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6.09
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104
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43.32
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45.02
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-4
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PAT
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681.33
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623.78
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9
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2072.40
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1136.87
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82
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EPS (Rs)*
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22.1
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20.2
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17.1
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9.1
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Adj BV (Rs)
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131.7
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110.1
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131.7
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110.1
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*Annualized on
current equity of Rs 246.62 core excluding EO and relevant tax. Face Value:
Rs 2, Figures in Rs crore
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Source:
Capitaline Corporate Database
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