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 financial year ended March 31, 2020.
F-2020 Q4 Standalone Results
The Total Income increased by 8% at Rs. 2,676 Crores during the quarter year ended March 31, 2020, as against Rs. 2,480 Crores during the corresponding quarter last year. The Profit Before Tax (PBT) stood at Rs.292 Crores during the quarter year ended March 31, 2020, as against Rs. 895 Crores during the corresponding quarter last year, a decline of 67% over the same period previous year. The Profit After Tax (PAT) stood at Rs. 221 Crores during the quarter year ended March 31, 2020, as against Rs. 588 Crores during the corresponding quarter last year, a decline of 62% over the same period previous year. The Company in order to cover the contingencies that may arise due to COVID–19 Pandemic, has incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of Profit and Loss during the quarter is Rs. 562.60 crores.
F-2020 YTD Standalone Results
The Total Income increased by 16% at Rs. 10,245 Crores during the financial year ended March 31, 2020, as against Rs. 8,810 Crores during the corresponding period last year. The Profit Before Tax (PBT) stood at Rs.1,344 Crores during the financial year ended March 31, 2020, as against Rs. 2,382 Crores during the corresponding period last year, a decline of 44% over the same period previous year. The Profit After Tax (PAT) stood at Rs. 906 Crores during the financial year ended March 31, 2020, as against Rs. 1,557 Crores during the corresponding period last year, a decline of 42% over the same period previous year. The Company in order to cover the contingencies that may arise due to COVID–19 Pandemic, has incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of Profit and Loss during the quarter is Rs. 562.60 crores.
F-2020 Q4 Consolidated Results
The Total Income increased by 8% at Rs. 3,140 Crores during the quarter year ended March 31, 2020, as against Rs. 2,902 Crores during the corresponding quarter last year. The Profit Before Tax (PBT) stood at Rs.306 Crores during the quarter year ended March 31, 2020, as against Rs. 1,041 Crores during the corresponding quarter last year, a decline of 71% over the same period previous year. The Profit After Tax (PAT) stood at Rs. 239 Crores during the quarter year ended March 31, 2020, as against Rs. 701 Crores during the corresponding quarter last year, a decline of 66% over the same period previous year. The Company in order to cover the contingencies that may arise due to COVID–19 Pandemic, has incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of Profit and Loss during the quarter is Rs. 681.16 crores.
F-2020 YTD Consolidated Results
The Total Income increased by 15% at Rs. 11,996 Crores during the financial year ended March 31, 2020, as against Rs. 10,431 Crores during the corresponding period last year. The Profit Before Tax (PBT) stood at Rs.1,602 Crores during the financial year ended March 31, 2020, as against Rs. 2,841 Crores during the corresponding period last year, a decline of 44% over the same period previous year. The Profit After Tax (PAT) stood at Rs. 1,086 Crores during the financial year ended March 31, 2020, as against Rs. 1,867 Crores during the corresponding period last year, a decline of 42% over the same period previous year. The Company in order to cover the contingencies that may arise due to COVID–19 Pandemic, has incorporated the management overlays in the impairment loss allowance and the total provision recognized in the statement of Profit and Loss during the quarter is Rs. 681.16 crores.
Operations
The Company continues to be leading financer for automotive and tractors including pre-owned vehicle segment, in rural & semi urban markets. During the financial year ended March 31, 2020, the total value of assets financed was Rs. 42,388 Crores as against Rs. 46,210 Crores during the corresponding period last year, a decline of 8% over the same period previous year. While the company has gained market share in many of the product lines, however in view of declining sales of Vehicles and Tractors, the disbursements have been lower.
The outbreak of COVID-19 pandemic has resulted in further slowdown in economic activities across the country, which even otherwise was on a slow pace. As an organization, we have been strictly adhering to social distancing norms and lockdown announcements by the government, on account of this we had impacts on business and recovery in the last quarter of the financial year.
Impairment provisioning is done as per Expected Credit Loss (ECL) method in lnd AS, which requires provisioning in three stages. The Gross Stage 3 levels stood at 8.44% for the year ended March 31, 2020, against 6.45% during the corresponding period last year. The Net Stage 3 levels stood at to 5.98% for the period ended March 31, 2020, from 5.28% during the corresponding period last year. The Stage 3 provisioning coverage ratio stood at 31.0%.
Based on the economic package being announced by the government, post lockdown we expect business to start in a phased manner. Demand may gradually start with dealers selling smaller vehicles and tractors.
The Company has started operations in a phased manner in 524 branches in green and amber zones in the month of May 2020, following all safety measures.
The Company continued its effort through the year to improve Asset Quality and has complied with the prudential guidelines issued by the Reserve Bank of India and has also been making accelerated provision.
The Company’s capital and debt position is strong and the ALM position is well balanced.
The Board after a detailed discussion, decided to conserve capital given the current situation and did not recommend any dividend for the year.
The Standalone Assets Under Management (AUM) stood at Rs. 77,160 Crores as on March 31, 2020, as against Rs. 68,948 Crores as on corresponding date last year, registering a growth of 12%.
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SOURCE: Mahindra
