2. ACHIEVE FULL POTENTIAL Mahindra Finance and Tech Mahindra represent two compelling transformation journeys that are delivering tangible results. Both businesses faced periods of underperformance relative to peers, prompting bold and structured turnaround strategies rooted in operational discipline, focused priorities and strengthened organisational structures. MAHINDRA FINANCE Mahindra Finance (MMFSL) is one of India’s leading NBFCs, with an established financing platform across rural and semi urban markets. Its strong local presence and strategic partnerships within the ecosystem have equipped MMFSL with extensive insights and a deep understanding of customers across the credit spectrum. MMFSL faced some challenges in the past during periods of significant economic stress like the COVID years which prompted us to look at the segments we were serving. With a strong focus on generating business from the right customer segments supplemented with strong underwriting and risk processes, MMFSL has made substantial progress in improving asset quality, ensuring delinquencies remain range bound. To strengthen the backbone supporting the business efforts, MMFSL has made significant investments in data and technology to transform processes such as sourcing, underwriting, disbursement, and collection. In FY25, MMFSL achieved very low GS3 delinquencies at < 4% throughout the year. This was better than the businesses commitment of staying below 4.5%. Despite the tight focus on asset quality, the business delivered disbursement growth of 3% and an overall AUM growth of 17% while profitability hit 1.9% return on Assets. This progress has given the team confidence that they are on the right path. Strategic Imperatives Going forward, MMFSL will be prioritising efforts under these areas: • Continued focus on Asset quality and keeping GS3 < 4.5%. • Defending and growing its leadership position in vehicle financing. • Grow new lines of businesses, especially SME, leasing and fee income (insurance). • Turning around and then growing the rural housing finance business. • Continuing to build a resilient model which is efficient, digitalised and operates with future-fit controls. Key Highlights • SME segment disbursements up 48% YoY. • Acquired corporate agency license and partnered with 10 insurance firms to grow fee-based income. • Continuing its focus on technology, MMFSL migrated critical applications to the cloud. Achievements in FY25 ₹1,19,673 Cr. MMFSL AUM, up 17% YoY 3.7% FY25 GS3, < 4.0% for 6 consecutive quarters 77% Digital collection, up from 69% in FY24 Rise To Create Value | 23 MAHINDRA & MAHINDRA LTD.
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