The net interest margin (NIM), on calculated basis, of the company declined to 8.34% in Q3FY2021 compared with 9.30% in the corresponding quarter last year.

Income from Operations declined 2% to Rs 2862.42 crore during the quarter ended December 2020, compared to the corresponding previous year quarter. Other Income dipped 13% to Rs 130.52 crore. The total Income fell 3% to Rs 2992.94 crore, while interest expenses declined 3% to Rs 1311.77 crore in the quarter ended December 2020.

The staff cost dipped 16% to Rs 336.00 crore, while other operating expenses plunged 31% to Rs 171.96 crore. The ensuing operating profit improved 9% to Rs 1173.21 crore in the quarter ended December 2020.

Depreciation declined 16% to Rs 36.51 crore during the quarter under review. Provisions & write-off zoomed 251% to Rs 1473.99 crore. The pre-tax loss came in at Rs 337.29 crore. The company has reversed tax provisions of Rs 89.68 crore, helping to reduce net loss to Rs 226.20 crore in the quarter ended December 2020.

On a standalone basis, total Income declined 2% at Rs 2541.80 crore during the quarter ended December 2020, as against Rs 2580.60 crore in the corresponding period last year. The net loss came in at Rs 274.10 crore during the quarter ended December 2020, as compared to net profit of Rs 365.30 crore during the corresponding period last year.

AUM of the company declined 5% to Rs 62124 crore at end December 2020 MMFSL currently has a network of 1246 offices. The company's customer base has crossed 7.14 million customers at end December 2020.

The standalone Assets under Management (AUM) increased 8% to Rs 81809 crore end December 2020, as against Rs 75884 crore end December 2019.

The Company maintains a healthy capital adequacy of 26.4%.

The Company's capital and debt position is strong and the ALM position is well balanced. With surplus liquidity over Rs 9000 crore as at the end of the quarter i.e. 15% of the overall borrowings, the Company is in a very comfortable position to meet its future repayment and growth requirements.

Asset Quality

GNPA rose to 9.99% of total asset at end December 2020 from 7.03% a quarter ago. NNPA ratio also rose to 6.57% on sequential basis from 4.68% a quarter ago. NPA coverage ratio improved to 36.60% at end December 2020 from 35.10% a quarter ago.

Book value of the company on standalone basis stood at Rs 119.0 per share and adjusted book value stood at Rs 84.8 per share end December 2020. Book value of the company on consolidated basis stood at Rs 126.8 per share and adjusted book value stood at Rs 85.8 per share end December 2020.

Mahindra Insurance Brokers (MIBL)

During the quarter ended December 2020, MIBL registered income at Rs 81.1 crore as against Rs 91.2 crore, registering a decline of 11% over the same period previous year. The Profit after Tax (PAT) registered was Rs 14.8 crore as against Rs 16.1 crore, registering a fall of 8% over the same period previous year.

Mahindra Rural Housing Finance (MRHFL)

During the quarter ended December 2020, MRHFL disbursed Rs 267.1 crore as against Rs 437.2 crore during the same period previous year, registering a dip of 39% over the same period previous year. MRHFL registered income at Rs 354.5 crore as against Rs 393.6 crore, registering a decline of 10% over the same period previous year. The Profit after Tax (PAT) registered a plunge of 87% at Rs 11.4 crore as against Rs 90.6 crore for the same period previous year. The GNPA of the company was at 14.87% and NNPA at 10.73% end December 2020.

Mahindra Manulife Investment Management (MMIMPL)

During the quarter ended December 31, 2020, MMIMPL earned total income of Rs 8.4 crore as compared to Rs 4.7 crore in the same period previous year. The company incurred a loss of Rs 8 crore compared to a loss of Rs 10.4 crore during the same period previous year.

The Average Assets under Management (AUM) of MMIMPL was Rs 5058 crore across 15 schemes end December 2020, which showed a decline of 5% over the same period previous year. Of these assets, the Company managed Rs 2097 crore of average equity assets in the quarter ended December 2020 compared to Rs 1644 crore in the same period last year.

Mahindra Manulife Trustee (MMTPL)

During the quarter ended December 2020, MMTPL earned total income of Rs 0.11 crore compared to Rs 0.05 crore during the same period previous year. The company posted a profit of Rs 0.01 crore compared to a loss of Rs 0.01 crore during the same period previous year.

Mahindra Finance USA, LLC (MFUSA)

MFUSA registered income at USD 15.15 million in Q3FY2021 as against USD 17.18 million in Q3FY2020. The Profit before Tax (PBT) was USD 10.08 million and net profit came in at USD 7.59 million in Q3FY2021 as against USD 3.71 million in Q3FY2020.

Ideal Finance (IFL)

IFL registered income at LKR 257 million as against LKR 241 million. The PBT was LKR 78 million as against LKR 41 million. The net profit was LKR 54 million as against LKR 35 million.

Financial Performance 9MFY2021:

For the nine months ended December 2020 (9MFY2021), MMFSL reported 4% rise in the Income from Operations to Rs 8808.29 crore, against the corresponding previous year period. Other Income declined 24% to Rs 323.84 crore. As a result, the total Income grew 3% to Rs 9132.13 crore. Interest expenses moved up 3% to Rs 4081.46 crore, while the operating expenses plunged 29% to Rs 1423.56 crore leading the operating profits to gain 24% to Rs 3627.11 crore. Depreciation declined 11% to Rs 113.96 crore, but provisions & write-off zoomed 106% to Rs 3088.66 crore. PBT fell 67% to Rs 424.49 crore. The effective tax rates stood at 27.6% in 9MFY2021 compared with 34.6% in 9MFY2020. Net Profit declined 34% to Rs 556.87 crore in 9MFY2021 over 9MFY2020.