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Results
05-May-24
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Analysis
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Mahindra & Mahindra Financial Services
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AUM rises 24%
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Mahindra
and Mahindra Financial Services (MMFSL), on a consolidated basis, has reported 2%
dip in the net profit to Rs 670.35 crore in the quarter ended March 2024
(Q4FY2024). The credit cost for the company rose to 144 bps (annualized) in
Q4FY2024 compared with 143 bps in preceding quarter and 41 bps in the corresponding
quarter last year. The net interest margin (NIM), on calculated basis, of the
company declined to 7.32% in Q4FY2024 compared with 8.05% in the corresponding
quarter last year.
Income
from Operations increased 18% to Rs 3865.78 crore during the quarter ended
March 2024, compared to the corresponding previous year quarter. Other Income
jumped 83% to Rs 467.16 crore. The total Income moved up 23% to Rs 4332.94 crore,
while interest expenses increased 26% to Rs 1860.88 crore in the quarter ended
March 2024.
The
staff cost fell 7% to Rs 560.08 crore, while other operating expenses increased
52% to Rs 589.87 crore. The ensuing operating profit improved 24% to Rs 1322.11
crore in the quarter ended March 2024.
Depreciation
rose 11% to Rs 72.18 crore during the quarter under review. Provisions &
write-off jumped 340% to Rs 369.64 crore. The profit before tax declined 4% to
Rs 880.29 crore. After accounting for taxation of Rs 225.09 crore, net profits fell
2% to Rs 670.35 crore in the quarter ended March 2024.
Business
highlights
AUM
(Business assets) crosses 1 lakh crore at Rs 1,02,597 crore, up 24% yoy.
Disbursement:
FY24 Rs 56,208 crore, up 13% yoy. Q4FY24 Rs 15292 crore, 11% yoy.
Continued
Leadership in Wheels: Passenger vehicles, Pre-owned vehicles and Tractors.
NII
margins improved QoQ 7.1% vs 6.8%. FY24 margins was at 6.8% against 7.6%.
Robust
Asset quality: GS2%+GS3% < 9%. Stage-3 at 3.4% vs. 4.0% end December 2023.
Credit
Cost: YoY 1.7% against 1.2%. (FY24 target 1.5% – 1.7% achieved)
A
one-time provision of Rs 136 crore towards fraud at one of the Company’s
branches
Capital
Adequacy healthy at 18.9% - Tier-1 Capital at 16.4%. Provision coverage on
Stage 3 loans remained prudent at 63.2%. Total liquidity buffer comfortable at Rs.
7,950 crore.
Subsidiaries:
Mahindra Insurance Brokers: Total Income more than Rs 1,000 crore,
PAT more than Rs 100 crore
Mahindra Rural Housing: Asset Quality improvement: Gross Stage 3 @
9%
Mahindra Manulife: AUM crosses Rs 20,000 crore (On 1st April 2024)
Financial
Performance FY2024:
For
the year ended March 2024 (FY2024), MMFSL reported 20% rise in the Income from
Operations to Rs 14412.33 crore, against the corresponding previous year
period. Other Income increased 81% to Rs 1557.99 crore. As a result, the total
Income grew 24% to Rs 15970.32 crore. Interest expenses moved up 37% to Rs 6959.20
crore, while the operating expenses increased 19% to Rs 4248.45 crore. Operating
profits increased 13% to Rs 4762.67 crore. Depreciation increased 22% to Rs 274.85
crore, while Provisions & write-off surged 65% to Rs 1955.75 crore. PBT
fell 8% to Rs 2588.13 crore. The effective tax rates stood at 25.5% in FY2024
compared with 26.5% in FY2023. Net Profit declined 7% to Rs 1932.69 crore in
FY2024 over FY2023.
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Mahindra & Mahindra Financial
Services: Consolidated Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Income from operations
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3865.78
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3281.73
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18
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14412.33
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12029.51
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20
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Other Income
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467.16
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254.62
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83
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1557.99
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858.95
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81
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Total Income
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4332.94
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3536.35
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23
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15970.32
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12888.46
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24
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Interest Expenses
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1860.88
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1477.40
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26
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6959.20
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5094.30
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37
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Operating Expense
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1149.95
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988.45
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16
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4248.45
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3569.11
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19
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Gross Profits
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1322.11
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1070.50
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24
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4762.67
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4225.05
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13
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Depreciation / Amortization
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72.18
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64.98
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11
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274.85
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225.96
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22
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Provisions and write off
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369.64
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84.05
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340
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1955.75
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1182.59
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65
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PBT before EO
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880.29
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921.47
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-4
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2532.07
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2816.50
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-10
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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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0.00
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-56.06
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-
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PBT after EO
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880.29
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921.47
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-4
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2532.07
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2760.44
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-8
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Tax Expense
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225.09
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258.97
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-13
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645.13
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732.56
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-12
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Net Profit
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655.20
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662.50
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-1
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1886.94
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2027.88
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-7
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Minority Interest
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0.29
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-6.41
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-105
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10.36
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-1.20
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-963
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P&L of Assosiate Co.
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15.44
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12.42
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24
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56.11
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43.32
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30
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PAT
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670.35
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681.33
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-2
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1932.69
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2072.40
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-7
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EPS (Rs)*
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21.7
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22.1
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15.7
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17.1
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Adj BV (Rs)
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149.5
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131.7
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149.5
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131.7
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*Annualized on current equity of
Rs 246.88 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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