MUMBAI:
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 audited financial results for the fourth quarter and year ended March 31, 2019.
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 fourth quarter and year ended March 31, 2019, are prepared and reported in compliance with Ind AS requirements. The comparative figures for the same period previous year has also been restated as per Ind AS.
F-2019 YTD Standalone Results
The Total Income increased by 32% at Rs.8,810 Crores during the year ended March 31, 2019, as against Rs.6685 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.1,557 Crores during the year ended March 31, 2019, as against Rs.1,076 Crores during the corresponding period last year, registered a growth of 45% over the same period previous year.
The PAT for the year ended March 31,2018 included an exceptional item on account of profit on 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 52% over the same period previous year.
F-2019 Q4 Standalone Results
The Total Income increased by 37% at Rs.2,480 Crores during the quarter ended March 31, 2019, as against Rs.1,808 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.588 Crores during the quarter ended March 31, 2019, as against Rs.314 Crores during the corresponding period last year, registered a growth of 87% over the same period previous year.
F-2019 YTD Consolidated Results
The Total Income increased by 32% at Rs.10,431 Crores during the year ended March 31, 2019, as against Rs.7,912 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.1,867 Crores during the year ended March 31, 2019, as against Rs.1,216 Crores during the corresponding period last year, registered a growth of 54% over the same period previous year.
Dividend
The Board in its meeting held today, recommended a dividend of 325% for the financial year ended March 31, 2019, (including special dividend of 125%) against 200% last year.
Operations
During the period ended March 31, 2019, the Company’s customer base has crossed 6.1 Million. The Total value of assets financed for the year ended March 31, 2019, was Rs.46,210 Crores as against Rs.37,773 Crores during the same period previous year, registering a growth of 22%.
The Total Assets Under Management (AUM) stood at Rs.67,078 Crores as on March 31, 2019, as against Rs.52,793 Crores in the corresponding period last year, registering a growth of 27%. The Company continues to be leading financer for automotive and tractors, including pre-owned vehicles. During the year, growth was higher in the pre-owned and commercial vehicle segment. We have also gained market share and volumes in all our lead products.
The Company’s capital and debt position is strong and the ALM position is well balanced. We continue to maintain high focus on quality due to which we have closed at NPAs lower than previous year. 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 5.9% for the quarter ended March 31, 2019, from 9.0% during the corresponding quarter last year. The Net Stage 3 levels have gone down to 4.8% for the quarter ended March 31, 2019, from 6.2% during the corresponding quarter last year. The Stage 3 provisioning coverage ratio stood at 19.2%.
Subsidiaries
Mahindra Insurance Brokers Limited (MIBL)
During the quarter ended March 31, 2019, MIBL registered income at Rs.99.7 crores as against Rs.88.4 crores, registering a growth of 13% over the same period previous year. The Profit After Tax (PAT) during the quarter ended March 31, 2019, registered was Rs.26.7 crores as against Rs.22.5 crores, registering a growth of 19% over the same period previous year.
During the year ended March 31, 2019, MIBL registered Income at Rs.323.4 crores as against Rs.245.1 crores, registering a growth of 32% over the same period previous year. The Profit After Tax (PAT) during the year ended March 31, 2019, was Rs.71.4 crores as against Rs.53.6 crores, registering a growth of 33% over the same period previous year.
