MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 24 Strategic Imperatives MMFSL has laid down a comprehensive Mission: Ÿ Stable asset quality GS-3 < 6% Ÿ 2x AUM Growth Ÿ Achieve 15% contribution from new business lines Ÿ Maintain NIMS at around 7.5% Ÿ Targeting operating Leverage cost to assets of c.2.5% Ÿ Achieve ROA of c.2.5% on a sustained basis Key Highlights Ÿ Asset quality improved sharply across Stage 2 and Stage 3 (GS2+GS3 combined) from 21.9% in F22 to 8.4% in F24. Ÿ The business continues to enhance digital capabilities to improve customer experience and employee productivity. Various end-to-end customer digital journeys are progressing well. Ÿ Partnerships forged with SBI, Bank of Baroda, India Post are expected to drive volumes in overall disbursements. Achievements in F24 Ÿ MMFSL crossed the INR 1,00,000 crore mark in AUM, closing the year with an AUM of INR 1,02,597 crore, reflecting a 24% YoY growth and a 3-year CAGR of 17%. Ÿ Disbursements stood at INR 56,208 crore, representing a 13% YoY growth and a 3-year CAGR of 44%. This growth was driven by healthy diversification across passenger vehicles, commercial vehicles, used vehicles and three-wheeler businesses. Ÿ Significant improvement in asset quality, with GS-3 at an all-time low of 3.4% TECH MAHINDRA Tech Mahindra is a leading provider of digital transformation, consulting and business reengineering services and solutions. As an Associate of the Mahindra Group, it leverages cutting-edge technology to drive innovation and enhance customer experiences across diverse industries globally. With a new leadership team, Tech Mahindra has embarked on a multi year transformation. The overarching goal is to achieve leadership in the segments it operates in with well-defined growth and operational strategy. The positive long-term growth outlook for the technology sector, driven by digital transformation, increasing adoption of new-age technologies, and expanding global markets, supports Tech Mahindra's strategic focus. Strategic Imperatives Tech Mahindra has outlined a clear vision for F27, focusing on three main strategic imperatives to achieve its stated objective of 'Scale At Speed': Revenue sales improvement The sales organisation has been simplified to 6 sales SBUs from 12. The structure has been delayered for better synergy and accountability. Time and investment allocation across accounts has been reviewed to bring more attention and investment to top accounts and revamping engagement efforts with small accounts. Margin improvement The company is working on centralising the delivery structure to enable innovation and domain expertise and implement focused programs towards cost reduction and margin expansion. This step is expected to enhance client service while also increasing innovation, profitability and scalability. Organisation The internal policies are being reworked to strike a right balance between robust processes and frameworks along with freedom and creativity. Idea is to promote the entrepreneurial model with a unifying vision and supporting frameworks. The company also undertook and external cultural assessment and is working on the inputs received.
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