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Mahindra and Mahindra
Financial Services (MMFSL), on a consolidated basis, has reported 50% jump in
the net profit to Rs 358.69 crore in the quarter ended June 2023 (Q1FY2024), The
credit cost for the company increased to 273 bps (annualized) in Q1FY2024
compared with 41 bps in preceding quarter, while declined from 419 bps in the
corresponding quarter last year. The net interest margin (NIM), on calculated
basis, of the company declined to 7.59% in Q1FY2024 compared with 9.18% in the
corresponding quarter last year.
Income from Operations increased 22% to Rs 3368.83
crore during the quarter ended June 2023, compared to the corresponding
previous year quarter. Other Income jumped 81% to Rs 268.08 crore. The total
Income moved up 25% to Rs 3636.91 crore, while interest expenses increased 52% to
Rs 1597.19 crore in the quarter ended June 2023.
The staff cost moved up 17% to Rs 558.46 crore, while
other operating expenses increased 8% to Rs 353.05 crore. The ensuing operating
profit improved 7% to Rs 1128.21 crore in the quarter ended June 2023.
Depreciation rose 53% to Rs 66.36 crore during
the quarter under review. Provisions & write-off declined 16% to Rs 592.82
crore. The profit before tax increased 53% to Rs 469.03 crore. After accounting
for taxation of Rs 120.58 crore, net profits increased 50% to Rs 358.69 crore
in the quarter ended June 2023.
MMFSL currently has a network of 1367 offices.
On a standalone basis, Total Income was at Rs 3,125 crore for the quarter, an
increase of 25% yoy aided by growth in
asset book. Profit after Tax (PAT) was at
Rs 353 crore for the quarter as against Rs 223 crore during Q1 FY23, a growth of 58% yoy. Loan Book increased sequentially by 4.8% to Rs 86,732 crore with improvement in
disbursements. Disbursements at Rs 12,165 crores were higher by 28%
yoy.
Net Interest Margin for the quarter was at 6.8%; Net
Interest Income at Rs 1,675 crore increased by 7% yoy, impacted by change in
portfolio mix and increased interest costs.
Gross Stage 3 came down marginally from 4.5% in March
to 4.3% in June, aided by focused collection initiatives. The Company’s Capital
Adequacy is healthy at 21.2%. Provision coverage on Stage 3 loans maintained at
60.1%.
As of June end, the Company carried a total liquidity
buffer of approximately Rs 9,350 crore - covering 3 months’ obligations.
Business
highlights and asset quality
Disbursement in Q1FY2024 at Rs 12500 crore
was up 27% on YoY basis. Consequently, the Loan Book increased by 25% to Rs 93358
crore on YoY basis.
Collection efficiency during the quarter
remained strong at 94%, similar to the level observed in Q1FY23. Stage-3 assets
at 4.3% (4.5% as of March 2023), and Stage-2 assets, at 6.4% (6% as of March
2023), remained stable. Focus on collections including use of digital payment
channels and effective use of legal machinery are helping maintain healthy
asset quality.
The gap between GNPA (as per IRACP) and Gross Stage- 3
(as per IND-AS) is now range-bound and was at Rs 1,144 crore as at June end
(Rs. 1,184 crore as at March end). The restructured portfolio has now reduced
to Rs 1,860 crore from Rs 2,174 crore as a the end of March 2023.
Subsidiaries
Mahindra Rural Housing Finance (MRHFL)
During Q1FY2024, MRHFL registered income at Rs 342 crore
as against Rs 329 crore during the corresponding quarter last year, an increase
of 3.9% over the same period previous year. The Net Loss registered was Rs 22.5
crore during Q1FY2024, as against Profit After Tax (PAT) Rs 2.4 crore during
the corresponding quarter last year. Compared to previous June, the Net Stage 3
assets have improved from 10.0% to 8.5%.
Mahindra Insurance Brokers (MIBL)
During Q1FY2024, MIBL registered income at Rs 164 crore
as against Rs 89 crore during the corresponding quarter last year, a growth of
85% over the same period previous year. The Profit After Tax (PAT) registered
was Rs 17.3 crore during Q1FY2024 as against Rs 2.2 crore during the
corresponding quarter last year, a growth of 686% over the same period previous
year.
Mahindra Manulife Investment Management Private
(MMIMPL)
During Q1FY2024, MMIMPL registered income of Rs 14 crore
as against Rs 7.9 crore during the corresponding quarter last year, a growth of
77%. The Company incurred a loss of Rs 5.8 crore during Q1FY2024, as against
loss of Rs 10.8 crore during the corresponding quarter last year.
The Average Assets under Management (AUM) of MMIMPL
for Q1FY2024 was Rs 10,262 crore across 20 schemes which showed an increase of
11% over the same period previous year. Of these assets, the Company managed Rs
8,982 crore of average equity assets in Q1FY2024 compared to Rs 6,330 crore in
the same period last year.
Mahindra Manulife Trustee Private (MMTPL)
During Q1FY2024, MMTPL registered income at Rs 0.2
crore maintaining the same level as the corresponding quarter last year. Profit
After Tax (PAT) is Rs 0.01 crore during Q1FY2024, as against Rs 0.1 crore
during the corresponding quarter last year.
Mahindra Ideal Finance (MIFL)
During Q1FY2024,
MIFL registered income at LKR 561.1 Million as against LKR 396.4 Million during
the corresponding quarter last year, registering a growth of 42% over the same
period previous year. The Profit After Tax (PAT) during Q1FY2024, was LKR 25
Million as against LKR 14.4 Million during the corresponding quarter last year,
a growth of 73% over the same period previous year.
Mahindra Finance USA (MFUSA)
During Q1FY2024, MFUSA registered income
at USD 19.3 Million as against USD 14.6 Million during the corresponding
quarter last year, registering a growth of 32% over the same period previous
year. The Profit After Tax (PAT) during Q1FY2024, registered was USD 4.2
Million as against USD 4.7 Million during the corresponding quarter last year,
registering a decline of 11% over the same period previous year.
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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2306 (3)
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2206 (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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3368.83
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2765.92
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22
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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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268.08
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148.03
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81
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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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3636.91
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2913.95
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25
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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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1597.19
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1052.12
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52
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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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911.51
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802.92
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14
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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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1128.21
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1058.91
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7
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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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66.36
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43.37
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53
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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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592.82
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708.80
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-16
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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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469.03
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306.74
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53
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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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469.03
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306.74
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53
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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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120.58
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78.58
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53
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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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348.45
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228.16
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53
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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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3.53
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0.60
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488
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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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13.77
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11.70
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18
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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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358.69
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239.26
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50
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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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11.6
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7.8
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17.1
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9.1
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Adj BV (Rs)
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136.2
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109.4
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131.7
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110.1
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*Annualized on
current equity of Rs 246.72 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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