Mahindra & Mahindra Financial Services Ltd. · NSE:M&MFIN
Mahindra & Mahindra Financial Services — Q4 FY2025 Earnings Presentation
58 slides from Mahindra & Mahindra Financial Services's earnings presentation, Apr 22, 2025
Slide 1: Exchange filing cover letter for earnings presentation
22nd April 2025 To, BSE Limited, (Scrip Code: 532720) Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001 National Stock Exchange of India Ltd., (Symbol: M&MFIN) Exchange Plaza, 5th Floor, Plot No. C/1, “G” Block, Bandra - Kurla Complex, Bandra (East), Mumbai – 400 051 Dear Sir/ Madam, S
Slide 2: Result Update Quarter ended Mar'25 (Q4FY25)
Mahindra & Mahindra Financial Services Limited Result Update Quarter ended Mar’25 (Q4FY25) Regd. Office: Corporate Office: Gateway Building, Apollo Bunder, Mahindra Towers, 3rd Floor, Mumbai-400 001, India Dr. G. M. Bhosale Marg, Worli, Tel: +91 22 6897 5500 Mumbai-400 018, India Fax:+91 22 2287 548
Slide 3: 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 4: Executive Summary
Providing Financial Solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview ESG & CSR
Slide 5: Key Highlights
Key Highlights Q4FY25 FY25 Disbursements Rs 15,530 crores v/s Rs 15,292 crores YoY 2% Rs 57,900 crores v/s Rs 56,208 crores YoY 3% AUM Rs. 119,673 crores v/s Rs. 102,597 crores YoY 17% 10.0 10.0 9.7 10.2 10.2 21.9 8.4 9.1 GS2 + GS3 4.3 4.0 3.9 10.4 8.4 9.1 GS2 + GS3 3.4 3.6 3.8 3.7 7.7 Asset Qual
Slide 6: Operating excellence
Operating excellence Tractors leadership: Corporate agency FY25 SME loan Udaan: Digital FY25 disbursement ↑ license: Partnered with disbursals up 48% YoY onboarding and 8% YOY 10 insurance companies collections Non-cash collection Tech Resilience; cloud migration FY23 – FY25 Business Today award - i
Slide 7: Key Business Indicators Q4FY25 vs Q4FY24
Key Business Indicators Q4FY25 vs Q4FY24 Figs. In Rs. Cr Growth % Disbursements Business AUM Total Income NIM 2% 17% 15% 9% 4,245 1,971 2,156 15,530 1,19,673 3,706 15,292 1,02,597 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 13.3% 12.9% 7.1% 6.5% Total Opex PPOP Credit Cost PAT 18% 943 3%
Slide 8: Key Business Indicators FY25 vs FY24
Key Business Indicators FY25 vs FY24 Figs. In Rs. Cr Growth % Disbursements Business AUM Total Income NIM 3% 17% 19% 15% 8,176 57,900 1,19,673 16,075 7,135 56,208 1,02,597 13,562 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 12.8% 12.8% 6.8% 6.5% Total Opex PPOP Credit Cost PAT 15% 14% (11%) 33% 3,411 2,3
Slide 9: Overall Disbursements
Overall Disbursements Product Wise Q4 FY25 Q4 FY24 YoY FY25 FY24 YoY Tractor 1,248 1,122 11% 5,871 5,443 8% PV 6,021 5,915 2% 23,527 22,920 3% CV & CE 3,652 3,648 0% 12,290 12,512 (2%) 3-Wheeler 594 625 (5%) 2,445 2,496 (2%) Pre-Owned Vehicle 2,612 2,921 (11%) 9,468 9,745 (3%) SME 1,001 770 30% 3,01
Slide 10: Spread & RoA Tree
Spread & RoA Tree on standalone basis Particulars Q4FY25 Q3FY25 Q4FY24 FY25 FY24 Total Income / Average Assets 12.9% 13.1% 13.3% 12.8% 12.8% - Loan Income 11.6% 11.9% 12.1% 11.7% 11.8% - Fee, Investment & Other Income 1.3% 1.1% 1.2% 1.1% 1.1% Interest cost / Average Assets 6.3% 6.4% 6.2% 6.3% 6.1% G
Slide 11: GS3: Within range
GS3: Within range Figs. In Rs. Cr GS3 – 4 yrs Trendline GS3: Additions in Q4 FY25 7.66% 4.49% 4,525 4,414 3.40% 3.69% (111) (3.9%) (3.7%) 4,976 3,717 3,491 4,414 Mar-22 Mar-23 Mar-24 Mar-25 Q3FY25 Additions Q4FY25 Credit Cost 1,823 1,618 1,715 341 1,559 457 End Losses 602 498 Provisions (260) (40) 1
Slide 12: Credit Cost: Consistent decline in end losses
Credit Cost: Consistent decline in end losses on standalone basis Particulars FY22 FY23 FY24 FY25 Particulars Q4 FY24 Q4 FY25 GS-3 7.7% 4.5% 3.4% 3.7% Credit Cost 1.2% 1.4% Credit Cost 3.1% 1.2% 1.7% 1.3% Provision (0.9%) (0.1%) Provision (0.2%) (1.4%) 0.1% 0.0% End Losses 2.2% 1.5% Provision (Rs Cr
Slide 13: Progress on Mission - 2025 Aspirations
Progress on Mission - 2025 Aspirations What we said (Apr’22) Where we are FY’25 FY’25 Stable Asset GS3 < 6.0% GS3: 3.7% Quality NIM - 7.5% Credit Cost: 1.3% NIM: 6.5 % Growth 2X AUM 1.8X Upgrade Talent Complete Strengthened Tech & data Accelerate Operations Opex <2.5% Opex: 2.7% GRC*
Slide 14: Going forward: Priorities
Going forward: Priorities Defend and grow Steady progress Sustain risk levels Grow SME, Turnaround wheels on growth and (asset quality, leasing, and fee MRHFL & then leadership margins credit costs) income grow affordable (insurance) housing Continue to build a resilient operating model Efficiency g
Slide 15: Financial Information - Standalone
Providing Financial Solutions to Emerging India Executive Summary Financial Information - Standalone Subsidiary Financials Company Overview ESG & CSR
Slide 16: Key Financials
Key Financials on standalone basis Disbursement Total Income Profit after Tax Q4 FY25 Rs. 15,530 crores Rs. 4,245 crores Rs. 563 crores 2% 15% 9% Q4 FY24 Rs. 619 crores Rs. 15,292 crores Rs. 3,706 crores Rs. 57,900 crores Rs. 16,075 crores Rs.2,345 crores FY25 3% 19% 33% FY24 Rs. 56,208 crores Rs. 1
Slide 17: Distribution of Disbursements
Distribution of Disbursements on standalone basis Asset Class (Rs. in Crores) Q4 FY25 Q4 FY24 Y-o-Y FY25 FY24 Y-o-Y Passenger vehicles 6,021 (39%) 5,915 (39%) 2% 23,527 (41%) 22,920 (41%) 3% Commercial vehicles and 3,652 (24%) 3,648 (24%) 0% 12,290 (21%) 12,512 (22%) -2% construction equipments Pre-
Slide 18: Break down of Business Assets
Break down of Business Assets on Standalone Basis Asset Class FY25 FY24 FY23 Passenger vehicles 40% 39% 37% Commercial vehicles and construction 22% 23% 23% equipments Pre-owned vehicles 13% 13% 13% Tractors 11% 11% 14% SME 5% 5% 5% 3 Wheelers 4% 4% 3% Others* 5% 5% 5% Contribution of M&M assets in
Slide 19: Distribution by Geography
Distribution by Geography on standalone basis Disbursement* Business Assets Circle HQ Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Delhi 14.6% 13.8% 13.8% 13.1% Jaipur 15.7% 15.3% 14.8% 14.0% Lucknow 17.7% 17.3% 17.7% 17.7% Thane 18.5% 17.2% 19.0% 18.8% Chennai 11.9% 12.7% 12.0% 12.0% Hyderabad 12.8% 12.7% 12.4%
Slide 20: Disbursements → Steady YoY
Disbursements → Steady YoY on standalone basis Historical Disbursements (Rs. in crores) Q1 Q2 Q3 Q4 FY 12,741 13,162 16,467 15,530 57,900 FY 2025 (5% yoy) (-1% yoy) (7% yoy) (3% yoy) (2% 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^
Slide 21: Asset Quality → Overall Range-Bound
Asset Quality → Overall Range-Bound on standalone basis Gross Stage-3 Net Stage-3 7.7% 14.3% 4.5% 3.4% 3.4% 3.7% 6.0% 5.4% 5.0% 1.9% 1.8% 1.3% FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Gross & Net Stage - 3 Gross Stage - 2 20
Slide 22: Balance Sheet → Adequately Capitalized
Balance Sheet → Adequately Capitalized Capital Adequacy Gross Stage-3 Stage 3 - Coverage Ratio 22.5% 63.2% 4.5% 3.9% 59.5% 3.7% 3.4% 50.1% 51.2% 18.9% 18.3% 17.8% (19.9%) (16.4%) (15.1%) (15.2%) Mar-23 Mar-24 Dec-24 Mar-25 Mar-23 Mar-24 Dec-24 Mar-25 Mar-23 Mar-24 Dec-24 Mar-25 (Tier I- %) Adequatel
Slide 23: Growth Trajectory
Growth Trajectory on standalone basis Loan Book (1) (Rs. crores) Revenues (Rs. crores) 17% 1,16,214 19% 16,075 99,195 13,562 79,455 11,056 60,445 9,719 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Pre-Provisioning Operating Profit (Rs. crores) Profit after Tax (2) (Rs. crores) 2,345 1,984 33% 14% 4,765 1
Slide 24: Financial Performance
Financial Performance on standalone basis Cost to income ratio (1) (%) Return on Assets (ROA) (2) (%) 42.1% 41.4% 41.7% 2.3% 35.8% 1.9% 1.7% 1.3% FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Return on Net Worth (RONW) (2) (%) Asset Quality (%) 7.7% Gross Stage-3 Net Stage-3 12.1% 12.4% 4.5% 10.0% 3.4% 3.
Slide 25: Standalone Profit & Loss Account
Standalone Profit & Loss Account Particulars (Rs. in crores) Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 Revenue from operations (A) 4,241 4,143 2% 3,654 16% 16,019 Less: Finance cost (B) 2,090 2,046 2% 1,735 20% 7,898 NII (C= A-B) 2,151 2,097 3% 1,919 12% 8,121 Other Income (D) 4 1 52 56 Total Income (E=
Slide 26: Standalone Profit & Loss Account
Standalone Profit & Loss Account Particulars (Rs. in crores) FY25 FY24 Y-o-Y FY23 Revenue from operations (A) 16,019 13,407 19% 10,933 Less: Finance cost (B) 7,898 6,427 23% 4,577 NII (C= A-B) 8,121 6,980 16% 6,356 Other Income (D) 56 155 (64%) 123 Total Income (E=C+D) 8,176 7,135 15% 6,479 Employee
Slide 27: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. in crores) As on Mar 31, 2025 As on Mar 31, 2024 As on Mar 31, 2023 ASSETS Financial Asset a) Cash and cash equivalents 1,667 311 250 b) Bank balance other than (a) above 3,869 2,956 3,954 c) Derivative financial instruments 31 d) Trade Receivables 53 25 22
Slide 28: Standalone Balance Sheet (Contd.)
Standalone Balance Sheet (Contd.) Particulars (Rs. in crores) As on Mar 31, 2025 As on Mar 31, 2024 As on Mar 31, 2023 LIABILITIES AND EQUITY Financial Liabilities a) Derivative financial instruments 390 335 181 b) Payables i) Trade payables 1,209 1,459 1,127 ii) Other payables 20 65 40 c) Debt Secu
Slide 29: Summary & Key Ratios
Summary & Key Ratios on standalone basis Particulars FY25 FY24 FY23 RONW (Avg. Net Worth) - annualised 12.4% 10.0% 12.1% Debt / Equity 5.70:1 5.18:1 4.49:1 Capital Adequacy 18.3% 18.9% 22.5% Tier I 15.2% 16.4% 19.9% Tier II 3.1% 2.5% 2.6% EPS (Basic) (Rs.)* 18.99 14.26 16.09 Book Value (Rs.) 160.4 1
Slide 30: Stage 3 - Analysis
Stage 3 - Analysis on standalone basis Particulars (Rs. in crores) except figures in % Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Mar 31, 2023 Business Assets (including Provisions) 1,19,673 1,15,126 1,02,597 82,770 Gross Stage 3 4,414 4,525 3,491 3,717 Less: Stage 3 ECL Provisions 2,258 2,267 2,205 2,2
Slide 31: Credit Charge
Credit Charge on standalone basis Particulars (Rs. in crores) Q4FY25 Q3FY25 Q4FY24 FY25 FY24 FY23 Stage-1 Provisions 25 (31) 23 (7) 46 117 Stage-2 Provisions (56) (107) (66) 12 67 (651) Stage-3 Provisions (9) (296) (218)* 53 (5)* (680) Provisions – P&L Charge (40) (434) (260) 59 108 (1,214) Write-Of
Slide 32: Stage Wise Provisioning
Stage Wise Provisioning on standalone basis Stage-Wise Assets and Provisioning As on 31st Mar 2025 As on 31st Dec 2024 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 33: Broad Based Liability Mix
Broad Based Liability Mix on standalone basis Funding Mix by Investor Category Funding Mix by type of Instrument Mar’25 Dec’ 24 Mar’24 Mar’25 Dec’ 24 Mar’24 Investor Type Instrument Type Amount % Share % Share % Share Amount % Share % Share % Share Banks / Financial NCDs 25,067 22.6% 23.4% 26.7% 70,
Slide 34: ALM Position and Liability Maturity
ALM Position and Liability Maturity All figures in Rs. crores 1,40,000 1,31,639 280% Cumulative Inflow Cumulative Outflow Cumulative Mismatch% 1,20,000 1,12,604 1,12,448 240% 99,010 1,00,000 200% 80,000 160% 56,413 60,000 120% 45,766 36,654 40,000 25,370 80% 16,439 24,198 19,402 20,000 13,920 11,717
Slide 35: Financial Information - Consolidated
Providing Financial Solutions to Emerging India Executive Summary Financial Information - Consolidated Subsidiary Financials Company Overview ESG & CSR
Slide 36: Key Financials
Key Financials on consolidated basis Disbursement Total Income Profit after Tax Q4 FY25 Rs. 16,328 crores Rs. 4,897 crores Rs. 456 crores 1% 13% 32% Q4 FY24 Rs. 671 crores Rs. 16,174 crores Rs. 4,333 crores FY25 Rs. 60,741 crores Rs. 18,530 crores Rs. 2,261 crores 4% 16% 16% FY24 Rs. 58,647 crores R
Slide 37: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (Rs. in crores) Q4 FY25 Q3 FY25 Q-o-Q Q4 FY24 Y-o-Y Revenue from operations (A) 4,886 4,797 2% 4,280 14% Less: Finance cost (B) 2,218 2,175 2% 1,861 19% NII (C= A-B) 2,668 2,622 2% 2,419 10% Other Income (D) 11 3 53 (79%) Total Income (E=C+D) 2,679 2,62
Slide 38: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (Rs. in crores) FY25 FY24 Y-o-Y FY23 Revenue from operations (A) 18,463 15,797 17% 12,699 Less: Finance cost (B) 8,415 6,959 21% 5,094 NII (C= A-B) 10,048 8,838 14% 7,605 Other Income (D) 67 173 (61%) 133 Total Income (E=C+D) 10,115 9,011 12% 7,738 Empl
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in crores) As on Mar 31, 2025 As on Mar 31, 2024 As on Mar 31, 2023 ASSETS Financial Asset a) Cash and cash equivalents 1,830 904 587 b) Bank balance other than (a) above 4,017 3,172 4,889 c) Derivative financial instruments 31 - - d) Trade Receivables 247
Slide 40: Consolidated Balance Sheet (Contd.)
Consolidated Balance Sheet (Contd.) Particulars (Rs. in crores) As on Mar 31, 2025 As on Mar 31, 2024 As on Mar 31, 2023 LIABILITIES AND EQUITY Financial Liabilities a) Derivative financial instruments 392 335 181 b) Payables i) Trade payables 1,441 1,679 1,246 ii) Other payables 21 65 40 c) Debt Se
Slide 41: Subsidiary Financials
Providing Financial Solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview ESG & CSR
Slide 42: Mahindra Rural Housing Finance Limited
Mahindra Rural Housing Finance Limited Particulars (Rs. in crores) Q4FY25 Q4FY24 FY25 FY24 FY23 Loans disbursed 543 746 2,022 2,071 2,004 Loans & Advances (net) 6,894 6,933 6,894 6,933 6,845 Total income 296 310 1,197 1,294 1,350 PBT (204) 1 (305) 5 26 PAT (152) 1 (228) 4 22 Net-worth 1,260 1,488 1,
Slide 43: Mahindra Insurance Brokers Limited
Mahindra Insurance Brokers Limited Particulars (Rs. in crores) Q4FY25 Q4FY24 FY25 FY24 FY23 Gross Premium 1,381 1,387 4,739 4,556 4,037 Total income 343 311 1,240 1,095 427 PBT 37 46 124 168 46 PAT 27 34 89 124 34 No. of employees (nos.) 589 725 589 725 765 ▪ Business Area: Licensed by IRDAI for und
Slide 44: Mahindra Ideal Finance Limited
Mahindra Ideal Finance Limited Year ended Year ended Year ended Particulars (in LKR Mn) Q4FY25 Q4FY24 March -25 March -24 March -23 Loans disbursed 8,985 4,905 29,473 13,941 9,907 Loans & Advances (net) 14,803 8,543 14,803 8,543 7,124 Total income 775 591 2,741 2,309 1,924 PBT* 178 88 433 334 248 PA
Slide 45: Company Overview
Providing Financial Solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview ESG & CSR
Slide 46: Company Background
Company Background Parentage Mahindra & Mahindra Financial Services Limited (“MMFSL”) is a subsidiary of Mahindra and Mahindra Limited (M.Cap: Rs 3.44 trillion)* About MMFSL MMFSL (M.Cap: Rs 341 billion)*, one of India’s leading non-banking finance companies focused in the rural and semi-urban secto
Slide 47: Vision and Customer Offerings
Vision “Leading and Responsible Financial Solutions Partner of Choice for Emerging India” Our DNA Our Mantra 1,350+ Branches 6,000+ Dealers Bharat ke PAAS Bharat ke SAATH Scale 10+ OEMs 11M+ Customers Accessible Right Offering 100K Cr AUM – FY’24 Timely Trust Customer Customer Offerings Wheels
Slide 48: 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 49: 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 50: Shareholding Pattern (as on March 31, 2025)
Shareholding Pattern (as on March 31, 2025) Shareholding Pattern Top 10 Public Shareholders 5.80% ▪ Life Insurance Corporation of India ▪ HDFC Mutual Fund 31.31% ▪ SBI Mutual Fund ▪ HDFC Life Insurance Company Limited 52.16% ▪ Kotak Mahindra Mutual Fund ▪ Ashish Dhawan ▪ Government Pension Fund Glob
Slide 51: Extensive Branch Network
Extensive Branch Network ▪ Extensive branch network with presence in 27 states and 7 union Coverage (Circle HQ) territories in India through 1,365 offices ▪ Branches have authority to approve loans within prescribed Delhi Jaipur Lucknow guidelines 21 2 Thane Kolkata 26 33 Chennai Hyderabad 2 Branch
Slide 52: 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 53: Credit Rating
Credit Rating India Ratings Outlook Long term Issuer Rating; Bank Facility; Non-Convertible IND AAA Stable Debenture (incl. MLD) and Subordinated debt; Fixed Deposit IND PP-MLD AAA Short term Bank Facility & Commercial Paper IND A1+ - CRISIL Outlook Long term Bank Facility; Non-Convertible Debenture
Slide 54: Awards & Accolades
Awards & Accolades Won “Best in Talent & Workforce” by Business Today for Awarded “Employee Choice Awards 2024 – our outstanding achievements in talent management and Top-rated large company & Top-rated financial services” by workforce development. AmbitionBox for our exceptional employee satisfacti
Slide 55: ESG & CSR
Providing Financial Solutions to Emerging India Executive Summary Financial Information Subsidiary Financials Company Overview ESG & CSR
Slide 56: "Dhan Samvaad" - CSR Flagship Program
“Dhan Samvaad” - CSR Flagship Program >2,00,000 76% 65% 38% Individuals Trained Adoption of Digi Locker Linkages with Social Securities Women participants Application schemes o Launched Dhan Samvaad for “Financial & Digital Literacy”, to impact 1 Mn individuals by 2030 o To train underprivileged com
Slide 57: CSR Impact
CSR Impact 550 >48,000 ~3000 >14,500 Women trained in driving Women Skilled through Mahindra Underprivileged students assisted Girls assisted for elementary E-Rickshaw to enhance livelihood Pride program on domains such as with educational scholarship education - Nanhi Kali Program opportunities Agr
Slide 58: Thank You
Providing Financial Solutions to Emerging India Thank You
Mahindra & Mahindra Financial Services — Q4 FY2025 Earnings Presentation on 6ix