|Mahindra and Mahindra Financial Services (MMFSL), on a consolidated basis, has reported 32% decline in the net profit to Rs 278.22 crore in the quarter ended March 2017 (Q4FY2017). However, the company has exhibited healthy rebound in net profit from mere Rs 11.73 crore posted in the previous quarter Q3FY2017. The company has improved asset quality and margins, while posted strong 23% growth in the disbursement in Q4FY2017. The company has exhibited acceleration in loan growth to 14% at end March 2017.
However, the credit cost of the company remained elevated. The credit cost for the company was lower on sequential basis at 323 bps (annualized) in Q4FY2017 compared with 387 bps in preceding quarter, but increased from 114 bps in the corresponding quarter last year.
The net interest margin (NIM), on calculated basis, of the company improved to 11.29% in Q4FY2017 compared with 11.24% in the corresponding quarter last year.
Income from Operations increased 13% to Rs 2123.08 crore during the quarter ended March 2017, compared to the corresponding previous year quarter. Other Income declined 48% to Rs 9.49 crore. The total Income moved up 12% to Rs 2132.57 crore, while interest expenses rose 9% to Rs 802.36 crore in the quarter ended March 2017.
The staff cost moved up 19% to Rs 240.87 crore, while other operating expenses increased 27% to Rs 247.05 crore. The ensuing operating profit improved 9% to Rs 842.29 crore in the quarter ended March 2017, snapping decline for last three quarters.
Depreciation rose 31% to Rs 15.84 crore during the quarter under review. Provisions & write-off zoomed 224% to Rs 378.29 crore. The profit before tax declined 30% to Rs 448.16 crore. After accounting for taxation of Rs 162.18 crore and minority interest of Rs 7.76 crore, the net profit fell 32% to Rs 278.22 crore in the quarter ended March 2017.
On a standalone basis, total Income increased 9% at Rs 1825.50 crore during the quarter ended March 2017, as against Rs 1672.10 crore in the corresponding period last year. The net profit dipped 37% to Rs 234.10 crore during the quarter ended March 2017, as compared to Rs 370.30 crore during the corresponding period last year.
AUM of the company increased 14% to Rs 46775.5 crore at end March 2017. MMFSL currently has a network of 1182 offices. The company's customer base has crossed 4.71 million customers at end March 2017. The disbursements of Mahindra Finance have posted healthy growth of 23% to Rs 8376.4 crore in the quarter ended March 2017.
GNPA dipped to 9.00% of total asset at end March 2017 from 11.10% a quarter ago. NNPA ratio also declined to 3.60% on sequential basis from 5.20% a quarter ago. NPA coverage ratio improved to 61.80% at end March 2017 from 56.40% at end December 2016.
Mahindra Insurance Brokers (MIBL)
During the quarter ended March 2017, MIBL registered income at Rs 53.6 crore as against Rs 45.9 crore, registering a growth of 17% over the same period previous year. The Profit After Tax (PAT) registered was Rs 19.3 crore as against Rs 15.9 crore, registering a growth of 21% over the same period previous year.
Mahindra Rural Housing Finance (MRHFL)
During the quarter ended March 2017, MRHFL disbursed Rs 795 crore as against Rs 530.5 crore during the same period previous year, registering a growth of 50% over the same period previous year. MRHFL registered income at Rs 219.9 crore as against Rs 155 crore, registering a growth of 42% over the same period previous year. The Profit After Tax (PAT) registered a growth of 30% at Rs 38.9 crore as against Rs 29.9 crore for the same period previous year.
Book value of the company stood at Rs 123.18 per share on a consolidated basis and Rs 114.63 per share on a standalone basis at end March 2017. Adjusted book value on consolidated basis stood at Rs 94.87 per share and Rs 86.32 per share on standalone basis at end March 2017.
Annual Financial Performance:
For the year ended March 2017 (FY2017), MMFSL reported 9% rise in the Income from Operations to Rs 7146.20 crore, against the corresponding previous year period. Other Income increased 25% to Rs 54.45 crore. As a result, the total Income grew 9% to Rs 7200.65 crore. Interest expenses moved up 11% to Rs 3186.17 crore, while the operating expenses increased 27% to Rs 1733.45 crore. The operating profits declined 4% to Rs 2281.03 crore. Depreciation increased 18% to Rs 53.72 crore, while provisions & write-off increased 27% to Rs 1389.55 crore. PBT fell 32% to Rs 837.76 crore. Tax provisions declined 29% to Rs 308.05 crore and the Minority interest grew 20% to Rs 18.06 crore. Net Profit declined 34% to Rs 511.65 crore in FY2017 over FY2016.
Mahindra and Mahindra Financial Services: Consolidated Financial
Income from operations
Depreciation / Amortization
Profit before tax and Provisions
Provisions and write off
Profit before tax
Net Profit for the period
PAT after MI
*Annualized on current equity of Rs 113.01 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Databases