Financial Results for F-16, Q4

Mahindra Finance

F-2016 Q4 Standalone Results

PAT up by 11%

Income up by 10%

Disbursement up by 8%

F-2016 AUM up by 11% crosses 40000 Crores

Customer Base Crosses 4 Million in F-2016

Board Recommends 200% Dividend

Mumbai, April 23, 2016: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services in the rural and semi-urban markets announced today the audited financial results for quarter and year ended 31st March, 2016.

F-2016 Q4 Standalone Results

The Total Income increased by 10% at Rs.1690 Crores during the quarter ended 31st March, 2016 as against Rs.1537 Crores in the corresponding quarter last year. The Profit After Tax (PAT) grew by 11% to Rs.370 Crores during the quarter ended 31st March, 2016 as against Rs.333 Crores during the corresponding quarter last year.

F-2016 YTD Standalone Results

The Total Income increased by 6% at Rs.5905 Crores during the year ended 31st March, 2016 as against Rs.5585 Crores in the corresponding period last year. The Profit After Tax (PAT) declined by 19% to Rs.673 Crores during the year ended 31st March, 2016 as against Rs.832 Crores during the corresponding period last year. The PAT is after considering an additional provision of Rs.55 Crores (# Please refer the Note).

F-2016 Q4 Consolidated Results

The Total Income increased by 13% at Rs.1905 Crores during the quarter ended 31st March, 2016 as against Rs.1680 Crores in the corresponding quarter last year. The Profit After Tax (PAT) and minority interest grew by 12% to Rs.411 Crores during the quarter ended 31st March, 2016 as against Rs.367 Crores during the corresponding quarter last year.

F-2016 YTD Consolidated Results

The Total Income increased by 9% at Rs.6598 Crores during the year ended 31st March, 2016 as against Rs.6061 Crores in the corresponding period last year. The Profit After Tax (PAT) and minority interest declined by 15% to Rs.772 Crores during the year ended 31st March, 2016 as against Rs.913 Crores during the corresponding period last year. The PAT is after considering an additional provision of Rs.55 Crores (# Please refer the Note).

Dividend

The Board in its meeting held today recommended a dividend of 200% for the current financial year

Operations

The Company follows prudential norms for income recognition, asset classification and provisioning for Non-Performing Assets (NPAs) as prescribed by Reserve Bank of India (RBI) for NBFCs and has also been making additional provision on a prudential basis. The cumulative additional provision over the prevailing RBI norms is at Rs.736 Crores.

# Note: The Company has recognised NPAs based on 4 months overdue norms for the year ended 31st March, 2016 as against the revised regulatory norms of recognising NPAs at 5 months overdue applicable for the current financial year resulting in an additional provision of Rs. 55 Crores (including income de-recognition) with a consequent impact on Profit before tax for the year ended 31st March, 2016. However, there is no significant impact of this change on provision for the quarter ended 31st March, 2016.

Mahindra Finance, during the year ended 31st March 2016, has disbursed (value of assets financed) Rs.26706 Crores as against Rs.24331 Crores during the same period previous year, registering a growth of 10% over the same period previous year. For the quarter ended 31st March 2016, the Company has disbursed (value of assets financed) Rs.6811 Crores as against Rs.6303 Crores during the same period previous year, registering a growth of 8% over the same period previous year.

Through increased penetration and close follow up efforts the company has been able to increase overall collections and bring down NPA levels resulting in growth of profits.

During this financial year, the Company’s customer base has crossed 4 million customers. The Company currently has a network of 1167 offices and Total Assets Under Management (AUM) of Rs. 40933 Crores as on 31st March, 2016 as against Rs.36878 Crores as on 31st March 2015, a growth of 11%.

SUBSIDIARIES

Mahindra Insurance Brokers Limited (MIBL)

During the year ended 31st March 2016, the Company’s Insurance Broking subsidiary, MIBL registered income at Rs.149.2Crores as against Rs.126.2 Crores, a growth of 18% over the same period previous year. The Profit Before Tax (PBT) was Rs.75.2 Crores as compared to Rs.65.3 Crores, registering a growth of 15% over the same period previous year. The Profit After Tax (PAT) was Rs.48.5 Crores as against Rs.42.9 Crores, registering a growth of 13% over the same period previous year.

During the quarter ended 31st March 2016, MIBL registered income at Rs.45.9 Crores as against Rs.35.6 Crores, a growth of 29% over the same period previous year. The Profit Before Tax (PBT) registered was Rs.24.9 Crores as against Rs.19.6 Crores, registering a growth of 27% over the same period previous year. The Profit After Tax (PAT) was Rs.15.9 Crores as against Rs.12.8 Crores, registering a growth of 24% over the same period previous year.

Mahindra Rural Housing Finance Limited (MRHFL)

During the year ended 31st March 2016, MRHFL disbursed Rs. 1552.5 Crores as against Rs. 989.6 Crores during the previous year, registering a growth of 57% over the previous year. MRHFL registered income at Rs.495.4 Crores as against Rs. 328.4 Crores, a growth of 51% over the previous year. The Profit After Tax (PAT) was Rs. 62.7 Crores as against Rs. 44.2 Crores, registering a growth of 42% over the previous year.

During the quarter ended 31st March 2016, MRHFL disbursed Rs. 530.5 Crores as against Rs. 346.4 Crores during the same period previous year, registering a growth of 53% over the same period previous year. MRHFL registered income at Rs.155.0 Crores as against Rs. 101.7 Crores, a growth of 53% over the same period previous year. The Profit After Tax (PAT) was Rs. 29.8 Crores as against Rs. 21.6 Crores, registering a growth of 38% over the same period previous year.

About Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 4 million customers and has an AUM of over USD 6 billion. The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has over 1,100 offices across the country and is the first Non Banking Finance Company from India to form a part of Dow Jones Sustainability Index.

The Company's Insurance Broking subsidiary, Mahindra Insurance Brokers Limited (MIBL), is a licensed Composite Broker providing Direct and Reinsurance broking services.

Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of Mahindra Finance provides loans for purchase, renovation, construction of houses to individuals in the rural areas of the country.

Mahindra Asset Management Company Private Limited (MAMCPL) a wholly owned subsidiary of Mahindra Finance has received the approval from the market regulator for establishing Mutual Fund business in India.

The Company has a JV in US, Mahindra Finance USA, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra tractors in US.

About Mahindra

The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.

A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.

In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.

Visit us at www.mahindra.com

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For further enquiries please contact:

Metabelle Lobo

General Manager, Group Communications

Mahindra and Mahindra Ltd.

Mahindra Towers, Worli,

Mumbai - 400018

Mobile: +91 9769212078

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