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Mahindra Finance F-2019 Q3 Standalone Results

Mahindra Finance

Standalone Results December 2018

Income up by 30% YoY, at Rs.6,334 Crores

PAT up by 36% YoY, at Rs.969 Crores

Disbursement up 33% YoY, at Rs.34,485 Crores

AUM up by 30% YoY, crosses Rs.63,000 Crores

Mumbai, January 25, 2019: 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 standalone unaudited financial results for the third quarter and nine-month period ended December 31, 2018.

In line with direction from Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) with effect from April 1, 2018. Results for the quarter and nine-month period ended are prepared and reported in compliance with Ind AS requirements. The figures for the same quarter and period previous year have also been restated as per Ind AS.

F-2019 YTD Dec 18 Results

The Total Income increased by 30% at Rs.6,334 Crores during the nine-month period ended December 31,2018, as against Rs.4,879 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.969 Crores during the nine-month period ended December 31, 2018, as against Rs.762 Crores during the corresponding period last year. The PAT for the period nine-month ended December 31, 2017 included an exceptional item on account of sale of shares in the subsidiary company, Mahindra Insurance Brokers Ltd. of Rs.50 Crores (Post Tax). The PAT without considering the exceptional item registered a growth of 36% over the same period previous year.

F-2019 Q3 Results

The Total Income increased by 23% at Rs.2,246 Crores during the quarter ended December 31, 2018, as against Rs.1,831 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.319 Crores during the quarter ended December 31, 2018, as against Rs.396 Crores during the corresponding period last year. The PAT for the quarter ended December 31, 2017 included an exceptional item on account of sale of shares in the subsidiary company, Mahindra Insurance Brokers Ltd. of Rs.50 Crores (Post Tax). The PAT without considering the exceptional item was down by 8% over the same period previous year.

Operations

During the period ended December 31, 2018, the Company’s customer base has crossed 5.9 Million.

The Total value of assets financed for the nine-month period ended December 31, 2018, was Rs.34,485 Crores as against Rs.25,912 Crores during the same period previous year, registering a growth of 33%.

The Total Assets Under Management (AUM) stood at Rs.63,073 Crores as on December 31, 2018, as against Rs.48,332 Crores in the corresponding period last year, registering a growth of 30%.

Impairment provisioning is done as per Expected Credit Loss (ECL) method prescribed in lnd AS, which requires provisioning in three stages. The company has considered all loan accounts with an ageing of above 90 days under Stage 3 (Impaired assets).

The Gross Stage 3 levels have gone down to 7.7% for the quarter ended December 31, 2018, from 12.3% during the corresponding quarter last year. The Net Stage 3 levels have gone down to 5.8% for the quarter ended December 31, 2018, from 8.2% during the corresponding quarter last year. The Stage 3 provisioning coverage ratio stood at 26.9%.

The Company's capital and debt position is strong and the ALM position is well balanced. The Company is confident of meeting its obligations towards discharging its liabilities.

SUBSIDIARIES

Mahindra Insurance Brokers Limited (MIBL)

During the quarter ended December 31, 2018, MIBL registered income at Rs.81.8 Crores as against Rs.61.8 Crores, registering a growth of 32% over the same period previous year. The Profit After Tax (PAT) registered was Rs.18.2 Crores as against Rs.8.8 Crores, registering a growth of 106% over the same period previous year.

During the nine-month period ended December 31, 2018, MIBL registered Income at Rs.223.7 Crores, as against Rs.156.8 Crores, registering a growth of 43% over the same period previous year. The Profit After Tax (PAT) was Rs.44.8 Crores as against Rs.31.0 Crores, registering a growth of 45% over the same period previous year.

Mahindra Rural Housing Finance Limited (MRHFL)

During the quarter ended December 31, 2018, MRHFL registered income at Rs.393.4 crores as against Rs.273.8 crores, a growth of 44% over the same period previous year. The Profit After Tax (PAT) registered was Rs.77.6 Crores as against Rs.53.2 Crores, registering a growth of 46% over the previous period.

During the nine-month period ended December 31, 2018, MRHFL registered income at Rs.1,030.2 crores as against Rs.747.0 crores, a growth of 38% over the previous period. The Profit After Tax (PAT) was Rs.168.5 Crores as against Rs.127.6 Crores, registering a growth of 32% over the previous period. MRHFL disbursed Rs.1,776.8 Crores as against Rs.1,759.9 Crores during the previous period, registering a growth of 1% over the previous year same period.

Mahindra Asset Management Company Private Limited (MAMCPL)

During the quarter ended December 31, 2018, MAMCPL earned revenues of Rs.4.4 Crores as compared to Rs.6.4 Crores in the same period previous year. The company incurred a loss of Rs.14.08 Crores compared to a loss of Rs.6.5 Crores during the same period previous year.

During the nine-month period ended December 31, 2018, MAMCPL earned revenues of Rs.23.5 Crores as compared to Rs.15.5 Crores in the same period previous year. The company incurred a loss of Rs.31.8 Crores compared to a loss of Rs.23.9 Crores during the same period previous year.

The Average Assets under Management (AUM) of MAMCPL for the quarter ended December 31, 2018 was Rs. 3,756 Crores across eight schemes which showed a growth of 34% over the same period previous year. Of these assets, MAMCPL managed Rs.1,310 crores of average equity assets in the quarter ended December 31, 2018 which compared to Rs.735 Crores in the same quarter last year. The number of client accounts as on December 31, 2018, increased to 150,326 of which 43,163 were investing via Systematic Investment Plans.

Mahindra Finance USA, LLC (MFUSA)

During the quarter ended December 31, 2018, MFUSA registered income at USD 16.9 Million as against USD 14.3 Million, registering a growth of 18 % over the same period previous year. The Profit After Tax (PAT) registered was USD 2.5 Million as against USD 1.5 Million, registering a growth of 67% over the same period previous year.

During the nine-month period ended December 31, 2018, MFUSA registered income at USD 50.4 Million as against USD 41.4 Million, registering a growth of 22 % over the same period previous year. The Profit After Tax (PAT) registered was USD 10.4 Million as against USD 6.7 Million, registering a growth of 55 % 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 5.9 Million customers and has an AUM of over USD 9 Billion. The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has 1,313 MMFSL offices and reaches out to customers spread over 3,50,000 villages and 7,000 towns across the country.

Mahindra Finance is the only Non-Banking Finance Company from India to be listed on the Dow Jones Sustainability Index in the Emerging Market Category. Mahindra Finance has been ranked 14th on the list of India's Best Companies to work for - 2018, by Great Place to Work® Institute. The Company has also been recognized among the Best BFSI Brands 2018 by The Economic Times.

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 and semi-urban areas of the country.

Mahindra Asset Management Company Private Limited (MAMCPL), a wholly-owned subsidiary of Mahindra Finance, acts as the Investment Manager of Mahindra Mutual Fund.

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

About Mahindra

The Mahindra Group is a USD 20.7 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It has a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company, by volume. It also enjoys a strong presence in agribusiness, components, commercial vehicles, speedboats, consulting services, energy, industrial equipment, logistics, real estate, steel, aerospace, defence and two wheelers. Headquartered in India, Mahindra employs over 240,000 people across 100 countries.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise

Media Contact information:

Metabelle Lobo
GM, Group Communications
Mahindra & Mahindra Limited
Tel: +91 22 24975178
Mobile: +91 9769212078
Email: lobo.metabelle@mahindra.com