Mahindra & Mahindra Financial Services Ltd. · NSE:M&MFIN
Mahindra & Mahindra Financial Services — Q1 FY2025 Earnings Presentation
53 slides from Mahindra & Mahindra Financial Services's earnings presentation, Jul 1, 2024
Slide 1: Result Update Quarter ended June'24 (Q1FY25)
Mahindra & Mahindra Financial Services Limited Result Update Quarter ended June’24 (Q1FY25) Regd. Office: Corporate Office: Gateway Building, Apollo Bunder, Mahindra Towers, 4th Floor, Mumbai-400 001, India Dr. G. M. Bhosale Marg, Worli, Tel: +91 22 2289 5500 Mumbai-400 018, India Fax:+91 22 2287 54
Slide 2: Safe Harbor
Safe Harbor Certain statements in the Financial Results Update presentation describing the Company's objectives, and predictions may be ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contai
Slide 3: Providing Financial Solutions to Emerging India
Providing Financial Solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview Business Strategy ESG & CSR
Slide 4: Q1FY25 Results – Highlights
Q1FY25 Results – Highlights on standalone basis PAT Q1 Disbursement Rs 513 crores v/s Rs 353 crores Rs 12,741 crores v/s Rs 12,165 crores YoY 45% YoY 5% Stage-3 @3.6% (v/s. 3.4% in Mar-2024) 6.7 5.9 AUM (Business Assets) 4.5 4.3 4.3 4.0 3.4 3.6 Rs 1,06,339 crores v/s Rs 86,732 crores YoY 23% Q2 Q
Slide 5: Q1FY25 Results: Healthy Profit Growth
Q1FY25 Results: Healthy Profit Growth on standalone basis Rs. in crores 1,829 3,760 797 448 1,932 1,135 686 513 Total Income Interest cost NII Opex PPOP Credit costs PBT PAT YoY 20% 15% 13% 45% Q1FY25* 12.9% 6.3% 6.6% 2.7% 3.9% 1.5% 2.4% 1.8% 12.7% 5.9% 6.8% 2.8% 4.1% 2.1% 1.9% 1.4% Q1FY24* 5 * % of
Slide 6: AUM Growth → 23% YoY
AUM Growth → 23% YoY on standalone basis 56,208 1,02,597 23% 1,06,339 49,541 82,770 86,732 5% 12,165 12,741 FY23 FY24 FY24 Q1 FY25 Q1 FY23 FY24 FY24 Q1 FY25 Q1 Disbursement Business Assets (AUM) 6
Slide 7: Distribution of Disbursements
Distribution of Disbursements on standalone basis Quarter Ended Quarter Ended Year Ended Asset Class (Rs. Crores) YoY Growth June – 24 June – 23 March – 24 Passenger vehicles 5,237 (41%) 5,106 (42%) 3% 23,297 (42%) Commercial vehicles and 2,575 (20%) 2,329 (19%) 11% 12,135 (22%) construction equipme
Slide 8: Business Assets Mix
Business Assets Mix on standalone basis Quarter ended Quarter ended Year ended Asset Class June – 24 June – 23 March– 24 Passenger vehicles 40% 38% 40% Commercial vehicles and construction 22% 22% 22% equipments Pre-owned vehicles 13% 12% 13% Tractors 11% 14% 12% SME 5% 5% 5% 3 Wheelers 4% 4% 4% Oth
Slide 9: Disbursement & Collection → Trending Steadily
Disbursement & Collection → Trending Steadily on standalone basis Historical Disbursements (INR crores) Q1 Q2 Q3 Q4 FY 12,741 FY 2025 - - - - (5% yoy) FY 2024 12,165 13,315 15,436 15,292 56,208 FY 2023 9,472 11,824 14,467 13,778 49,541 Collection Efficiency^ Q1 Q2 Q3 Q4 FY FY 2025 94% - - - - FY 202
Slide 10: Asset Quality → Stable
Asset Quality → Stable on standalone basis 4.5% Gross Stage-3 Net Stage-3 6.4% 4.3% 6.1% 6.0% 3.4% 3.6% 5.0% 1.9% 1.8% 1.3% 1.5% FY23 FY24 FY24 Q1 FY25 Q1 FY23 FY24 FY24 Q1 FY25 Q1 Gross & Net Stage - 3 Gross Stage - 2 10
Slide 11: Spread Analysis → YoY Reduction in Write Offs & Provisions
Spread Analysis →YoY Reduction in Write Offs & Provisions on standalone basis Quarter ended Quarter ended Quarter ended Year ended Year ended Particulars Jun - 24 Mar - 24 Jun - 23 Mar – 24 Mar – 23 Total Loan Income / Average Business Assets 13.1% 13.4% 13.3% 13.3% 13.5% Total Income / Average Asse
Slide 12: Balance Sheet → Adequately Capitalized & Healthy Coverage Ratios
Balance Sheet → Adequately Capitalized & Healthy Coverage Ratios Capital Adequacy Gross Stage-3 Stage 3 - Coverage Ratio 22.5% 63.2% 4.5% 4.3% 60.1% 59.8% 59.5% 21.2% 3.6% 3.4% 18.9% 18.5% (19.9%) (18.9%) (16.4%) (16.4%) Mar-23 Jun-23 Mar-24 Jun-24 Mar-23 Jun-23 Mar-24 Jun-24 Mar-23 Jun-23 Mar-24 Ju
Slide 13: Financial Information – Standalone
Providing financial solutions to Emerging India Executive Summary Financial Information – Standalone Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 14: Key Financials
Key Financials on standalone basis Disbursement Total Income Profit after Tax Q1 FY 25 Rs. 12,741 crores Rs. 3,760 crores Rs. 513 crores 5% 20% 45% Q1 FY 24 Rs. 353 crores Rs. 12,165 crores Rs. 3,125 crores 14
Slide 15: Distribution by Geography
Distribution by Geography on standalone basis Disbursement Business Assets Circle HQ Q1 FY 25 Q1 FY 24 Q1 FY 25 Q1 FY 24 Delhi 14.6% 13.4% 13.3% 12.4% Jaipur 14.9% 14.4% 14.2% 13.2% Lucknow 18.0% 18.3% 17.8% 17.7% Thane 18.3% 17.3% 18.6% 19.1% Chennai 12.4% 12.7% 12.0% 12.1% Hyderabad 12.8% 13.0% 12
Slide 16: Growth Trajectory
Growth Trajectory on standalone basis Loan Book (1) (Rs. crores) Revenues (Rs. crores) 99,195 1,02,811 13,562 79,455 83,241 11,056 9,719 60,445 3,125 3,760 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Pre-Provisioning Operating Profit (Rs. crores) Profit after Tax (2) (Rs. crores) 1
Slide 17: Financial Performance
Financial Performance on standalone basis Cost to income ratio (1) (%) Return on Assets (ROA) (2) (%) 42.1% 41.4% 41.3% 2.3% 40.3% 35.8% 1.7% 1.8% 1.3% 1.4% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Return on Net Worth (RONW) (2) (%) Asset Quality (%) Gross Stage-3 Net Stage-3 4.
Slide 18: Standalone Profit & Loss Account
Standalone Profit & Loss Account Particulars (Rs. in crores) Q1FY25 Q1FY24 Y-o-Y FY24 Revenue from operations (A) 3,722 3,085 21% 13,404 Less: Finance cost (B) 1,829 1,451 26% 6,427 NII (C= A+B) 1,894 1,634 16% 6,977 Other Income (D) 38 41 -7% 158 Total Income (E=C+D) 1,932 1,675 15% 7,135 Employee
Slide 19: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. in crores) As on Jun 30, 2024 As on Jun 30, 2023 As on Mar 31, 2024 ASSETS Financial Asset a) Cash and cash equivalents 1,298 245 311 b) Bank balance other than (a) above 2,396 2,777 2,378 c) Derivative financial instruments - - - d) Trade Receivables 15 17
Slide 20: Standalone Balance Sheet (Contd.)
Standalone Balance Sheet (Contd.) Particulars (Rs. in crores) As on Jun 30, 2024 As on Jun 30, 2023 As on Mar 31, 2024 LIABILITIES AND EQUITY Financial Liabilities a) Derivative financial instruments 368 244 335 b) Payables i) Trade payables 1,088 917 1,459 ii) Other payables 21 26 65 c) Debt Securi
Slide 21: Summary & Key Ratios
Summary & Key Ratios on standalone basis Quarter ended Quarter ended Year ended Particulars Jun – 24 Jun – 23 March – 24 RONW (Avg. Net Worth) - annualised 11.1% 8.2% 10.0% Debt / Equity 5.10:1 4.52:1 5.08:1 Capital Adequacy 18.5% 21.2% 18.9% Tier I 16.4% 18.9% 16.4% Tier II 2.1% 2.3% 2.5% EPS (Basi
Slide 22: Stage 3 - Analysis
Stage 3 - Analysis on standalone basis Particulars (Rs. in crores) except figures in % Jun 30, 2024 Jun 30, 2023 Mar 31, 2024 Mar 31, 2023 Business Assets (including Provisions) 1,06,339 86,732 1,02,597 82,770 Gross Stage 3 3,790 3,770 3,491 3,717 Less: Stage 3 ECL Provisions 2,267 2,267 2,205 2,210
Slide 23: Credit Charge
Credit Charge on standalone basis Particulars (Rs. in crores) Q1FY25 Q1FY24 FY24 FY23 Stage-1 Provisions -25 64 46 117 Stage-2 Provisions 89 77 67 (651) Stage-3 Provisions 62 72 (5) (680) Provisions – P&L Charge 126 213 108 (1,214) Write-Offs 322 313 1,715 2,213 Total 448 526 1,823 999 Figures re-gr
Slide 24: Stage Wise Provisioning
Stage Wise Provisioning on standalone basis Stage-Wise Assets and Provisioning As on 30th Jun 2024 As on 30th Jun 2023 As on 31st Mar 2024 Rs. in crores Business Assets Provisions & Business Assets Provisions & Business Assets Provisions & (Amount and %) Coverage (Amount and %) Coverage (Amount and
Slide 25: Broad Based Liability Mix
Broad Based Liability Mix on standalone basis Funding Mix by Investor Category Funding Mix by type of Instrument Jun’ 24 Mar’ 24 Jun’23 Jun’ 24 Mar’24 Jun’23 Investor Type Instrument Type Amount % Share % Share % Share Amount % Share % Share % Share Banks / Financial NCDs 25.2% 24.4% 25.9% 58,904 61
Slide 26: ALM Position and Liability Maturity
ALM Position and Liability Maturity All figures in INR crores 1,20,000 1,12,073 280% Cumulative Inflow Cumulative Outflow Cumulative Mismatch% 1,00,000 95,193 93,049 240% 80,193 200% 80,000 160% 60,000 46,109 120% 40,000 34,634 18,854 28,877 80% 15,525 11,000 17,143 20,000 9,575 40% 4,103 5,979 - 0%
Slide 27: Financial Information – Consolidated
Providing financial solutions to Emerging India Executive Summary Financial Information – Consolidated Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 28: Key Financials (Consolidated)
Key Financials on consolidated basis Disbursement Total Income Profit after Tax Q1 FY 25 Rs. 13,380 crores Rs. 4,355 crores Rs. 497 crores 7% 20% 37% Q1 FY 24 Rs. 362 crores Rs. 12,500 crores Rs. 3,637 crores 28
Slide 29: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (Rs. in crores) Q1FY25 Q1FY24 Y-o-Y FY24 Revenue from operations (A) 4,316 3,583 20% 15,797 Less: Finance cost (B) 1,960 1,597 23% 6,959 NII (C= A+B) 2,356 1,986 19% 8,838 Other Income (D) 39 54 -27% 173 Total Income (E=C+D) 2,395 2,040 17% 9,011 Employ
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in crores) As on Jun 30, 2024 As on Jun 30, 2023 As on Mar 31, 2024 ASSETS Financial Asset a) Cash and cash equivalents 1,564 595 904 b) Bank balance other than (a) above 2,501 3,621 2,551 c) Derivative financial instruments - - - d) Trade Receivables 166
Slide 31: Consolidated Balance Sheet (Contd.)
Consolidated Balance Sheet (Contd.) Particulars (Rs. in crores) As on Jun 30, 2024 As on Jun 30, 2023 As on Mar 31, 2024 LIABILITIES AND EQUITY Financial Liabilities a) Derivative financial instruments 368 245 335 b) Payables i) Trade payables 1,298 1,084 1,679 ii) Other payables 21 26 65 c) Debt Se
Slide 32: Subsidiary Financials
Providing financial solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 33: Mahindra Rural Housing Finance Limited
Mahindra Rural Housing Finance Limited Particulars (Rs. in crores) Year ended Year ended Q1FY25 Q1FY24 March -24 March -23 Loans disbursed 488 289 2,071 2,004 Loans & Advances (net) 6,912 6,626 6,933 6,845 Total income 303 342 1,294 1,350 PBT (75) (30) 5 26 PAT (57) (23) 4 22 Net-worth 1,432 1,461 1
Slide 34: Mahindra Insurance Brokers Limited
Mahindra Insurance Brokers Limited Particulars (Rs. in crores) Year ended Year ended Q1FY25 Q1FY24 March -24 March -23 Gross Premium 1,127 940 4,556 4,037 Total income 287 164 1,095 427 PBT 30 24 168 46 PAT 21 17 124 34 No. of employees (nos.) 685 746 725 765 ▪ Business Area: Licensed by IRDAI for u
Slide 35: Mahindra Ideal Finance Limited
Mahindra Ideal Finance Limited Particulars (in LKR Mn) Year ended Year ended Year ended Q1FY25 Q1FY24 March -24 March -23 March -22 Loans disbursed 5,465 1,737 13,941 9,907 10,140 Loans & Advances (net) 9,322 6,871 8,543 7,124 7,230 Total income 591 561 2,309 1,924 1,322 PBT* 40 79 334 248 401 PAT (
Slide 36: Company Overview
Providing financial solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 37: Company Background
Company Background Parentage Mahindra & Mahindra Financial Services Limited (“MMFSL”) is a subsidiary of Mahindra and Mahindra Limited (M.Cap: Rs 3.48 trillion)* About MMFSL MMFSL (M.Cap: Rs 361 billion)*, one of India’s leading non-banking finance companies focused in the rural and semi-urban secto
Slide 38: MMFSL Group Structure
MMFSL Group Structure Mahindra & Mahindra Limited 52.16% Mahindra & Mahindra Financial Services Limited 100%(1) 98.43%(2) 49% 51%(3) 51%(3) 58.2%(4) Mahindra Insurance Mahindra Rural Mahindra Finance USA Mahindra Manulife Mahindra Manulife Mahindra Ideal Finance Brokers Limited Housing Finance LLC I
Slide 39: Our Journey
Our Journey Long term debt Partnered with rating upgraded to Manulife for Mutual Equity AAA by India Fund business participation of Ratings and 12.5%by NHB in Brickwork. Maiden Retail Invested in Ideal MRHFL QIP Issue of Rs. Received Corporate NCD Issue of Rs. Finance for providing 426 crores CARE R
Slide 40: Shareholding Pattern (as on June 30, 2024)
Shareholding Pattern (as on June 30, 2024) Shareholding Pattern Top 10 Public Shareholders 7.00% ▪ Life Insurance Corporation of India ▪ HDFC Mutual Fund ▪ HDFC Life Insurance Company Limited 30.67% ▪ SBI Mutual Fund 52.16% ▪ ICICI Prudential Mutual Fund ▪ Kotak Mahindra Mutual Fund. ▪ Ashish Dhawan
Slide 41: Extensive Branch Network
Extensive Branch Network ▪ Extensive branch network with presence in 27 states and 7 union territories in India through 1,370 offices Coverage (Circle HQ) ▪ Branches have authority to approve loans within prescribed Delhi Jaipur Lucknow guidelines 21 2 Thane Kolkata 26 33 2 Chennai Hyderabad Branch
Slide 42: Diversified Product Portfolio
Diversified Product Portfolio Vehicle Financing Pre-Owned Vehicles SME Financing Loans for auto and utility vehicles, tractors, cars, Loans for pre-owned cars, multi-utility vehicles, Loans for varied purposes like project finance, commercial vehicles and construction tractors and commercial vehicle
Slide 43: Credit Rating
Credit Rating India Ratings Outlook Long term and Subordinated debt (incl. MLD); IND AAA Stable Bank Facilities; Fixed Deposit Programme IND PP-MLD AAA Short term debt IND A1+ - CRISIL Outlook Long term and Subordinated debt; Bank Facilities; CRISIL AAA Stable Fixed Deposit Programme Short term debt
Slide 44: The Core Management Team
The Core Management Team SANDEEP VIVEK KARVE MAHESH SHIV KUMAR DEEPA MANISH DEVENDRA MANDREKAR RAJARAMAN NV RANJEET SINHA SHARNAGAT CBO - Wheels CFO CRO SME & LAP Digital CHRO Data/Analytics GAURAV VEDANARAYANAN ANTHONY SHANTANU VERMA SESHADRI HEREDIA REGE Underwriting MD, MIBL CEO - MMIMPL MD & CEO
Slide 45: Business Strategy
Providing financial solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 46: Bharat ke PAAS, Bharat ke SAATH
Bharat ke PAAS, Bharat ke SAATH PAAS (Near Middle India) SAATH (With Middle India) ACCESSIBLE TIMELY ASSET BASED ASSET LIGHT TRUST RIGHT Branches, Seamless assisted and DIY digital Wheel OFFERING Insurance, Transparency, Smart counters, journeys dominance FD, smooth & fair Partnerships/ecosystem, (P
Slide 47: Goals to deliver: 2.5% + ROA
Goals to deliver : 2.5 % + ROA Stable Asset Quality Ace CVPs Market Share Returns Maintain <4.5% GS-3 across cycles Top 3 in customer value Maintain 12% market share in Improve RoA to 2.5% proposition wheels + Diversified Portfolio PPC NPS Growth Opex Fee Income 25-30% revenue from Non-wheels 3+ ~60
Slide 48: ESG & CSR
Providing financial solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview Business Strategy Awards & CSR Initiatives
Slide 49: ESG
ESG Approved SCIENCE-BASED TARGETS Science Based Green House Gas Emissions reduction targets validated by Science Based Targets Initiatives (SBTI) . Scope 1 and Scope 2 target ambitions in line with 1.5-degree Celsius trajectory. Reduction in absolute scope 1 and 2 GHG emissions 50.4% by FY 2032 fro
Slide 50: Recognition
Recognition Recognised for ESG ■ Included for the 4th time in the renowned FTSE4Good Index Series demonstrating strong ESG practices ■ Included in the ‘CRISIL Sustainability Yearbook 2022’ in the Leadership category for ESG performance Amongst Best Places to Work in India ■ Recognized as India’s 100
Slide 51: CSR
CSR Swabhimaan – A holistic driver development program Training New Drivers Mahindra Hariyali Scholarships for Drivers’ children Nanhi Kali: Educational support Road Safety training Women Empowerment E/Auto Rickshaw training for women Water conservation Skill Development for Disability affected Mone
Slide 52: CSR Awards
CSR Awards Mahindra Finance awarded Mahindra Finance honoured with Mahindra Finance received Best Financial Inclusion Initiative Rotary CSR Awards for The CSR Journal Excellence Awards 2023 at DNA Awards 2023 Community Development Program 52
Slide 53: Thank You
Providing financial solutions to Emerging India Thank You
Mahindra & Mahindra Financial Services — Q1 FY2025 Earnings Presentation on 6ix