Mahindra Finance Q1 PAT up by 34% at INR 269 crore

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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 unaudited financial results for the quarter ended June 30, 2018.

In line with direction from Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2018. Results for the quarter (FY19-Q1) are prepared and reported in compliance with Ind AS requirements. The figures for the same quarter previous year (FY18 Q1) have also been restated as per Ind AS.

F-2019 Q1 Standalone Results

The Total Income increased by 29% at INR 1940 crore during the quarter ended June 30, 2018, as against INR 1509 Crore in the corresponding period last year.

The Profit After Tax (PAT) stood at INR 269 crore during the quarter ended June 30, 2018, as against INR 201 Crore during the corresponding quarter last year, registering a growth of 34% over the same period previous year.

Operations

During the quarter ended June 30, 2018, the Company’s customer base has crossed 5.5 Million.

The Total Assets Under Management (AUM) stood at INR 58711 Crore as on June 30, 2018, as against INR 48468 Crore as on June 30, 2017, registering a growth of 21%.

The Total value of assets financed for the quarter ended June 30, 2018, was INR 10338.68 Crore as against INR 7639.90 Crore during the same period previous year, registering a growth of 35%.

The Company continues to be leading financer for automotive and tractors, including pre-owned vehicles. During the quarter, growth has been higher in the pre-owned and commercial vehicle segment and also have gained market share in its lead products. Collection efficiency in the first quarter has been maintained at levels higher than previous year. Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 (CIN No.L65921MH1991PLC059642) 2

Impairment provisioning is done as per Expected Credit Loss (ECL) method prescribed in lnd AS, as of 30 June 2018 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 9.4% for the quarter ended June 30, 2018, from 14.5% during the corresponding quarter last year. The Net Stage 3 levels have gone down to 6.1% for the quarter ended June 30, 2018, from 8.8% during the corresponding quarter last year. The Stage 3 provisioning coverage ratio stood at 35.1%. Standard asset (Stage 1 and Stage 2) provisioning has increased to 258 bps as a result of ECL provisioning under Ind AS versus 40 bps as per RBI norms.

SUBSIDIARIES

Mahindra Insurance Brokers Limited (MIBL):

During the quarter ended June 30, 2018, MIBL registered Income at INR 67 Crore as against INR 50 Crore, registering a growth of 34% over the same period previous year. The Profit After Tax (PAT) registered was INR 14.8 Crore as against INR 13.4 Crore, registering a growth of 11% over the same period previous year.

Mahindra Rural Housing Finance Limited (MRHFL):

During the quarter ended June 30, 2018, MRHFL registered Income at INR 301.98 crore as against INR 219.49 Crore, registering a growth of 38% over the same period previous year. The Profit After Tax (PAT) registered was INR 30.88 Crore as against INR 31.28 Crore, registering a de-growth of 1% over the same period previous year.

The Total Assets Under Management (AUM) stood at INR 7168.15 Crore as against INR 5357.66 Crore, registering a growth of 34% over the same period previous year.

Mahindra Asset Management Company Private Limited (MAMCPL):

During the quarter ended June 30, 2018, MAMCPL registered Income at INR 9.41 Crore as against INR 4.10 Crore, registering a growth of 130% over the same period previous year. The company incurred a loss of INR 6.23 Crore as against loss of INR 11.18 Crore in the corresponding period year.

The Average Assets Under Management (AUM) for June 2018 was Rs.3980 Crore, across six schemes as against INR 2196 Crore for June 2017, registering a growth of 81% over the same period previous year.

Mahindra Finance USA, LLC (MFUSA):

During the quarter ended June 30, 2018, MFUSA registered Income at USD 16.4 Million as against USD 13.3 Million, registering a growth of 23% over the same period previous year. Profit After Tax (PAT) registered was USD 4.1 Million as against USD 2.7 Million, registering a growth of 52% over the same period previous year.