Mahindra & Mahindra Financial Services Ltd Q4FY21 consolidated PAT at Rs. 216.34 crores

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.3038.37 crores during the period ended March 31, 2021 as compared to Rs.2992.94 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.216.34 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.(226.20) crores for the period ended December 31, 2020.

The company has reported EPS of Rs.1.75 for the period ended March 31, 2021 as compared to Rs.(1.83) for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 3038.37 crs	₹ 2992.94 crs	1.52%
Net Profit	₹ 216.34 crs	₹ (226.20) crs	195.64%
EPS	₹ 1.75	₹ (1.83)	195.63%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.3038.37 crores during the period ended March 31, 2021 as compared to Rs.3140.26 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.216.34 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.234.82 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.1.75 for the period ended March 31, 2021 as compared to Rs.2.61 for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 3038.37 crs	₹ 3140.26 crs	-3.24%
Net Profit	₹ 216.34 crs	₹ 234.82 crs	-7.87%
EPS	₹ 1.75	₹ 2.61	-32.95%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.12170.50 crores during the 12 months period ended March 31, 2021 as compared to Rs.11996.46 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.773.21 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.1075.15 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.6.98 for the 12 months period ended March 31, 2021 as compared to Rs.11.95 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 12170.50 crs	₹ 11996.46 crs	1.45%
Net Profit	₹ 773.21 crs	₹ 1075.15 crs	-28.08%
EPS	₹ 6.98	₹11.95	-41.59%

The Company continues to be a leading financer for automotive and tractors, including the pre-owned vehicle segment, in rural & semi urban markets. During the financial year ended March 31, 2021, the total disbursements (amount financed) was at Rs.19,001 Crores as against Rs.32,381 Crores during the corresponding period last year, a decline of 41% over the same period previous year. The loan assets stood at Rs. 64,608 Crore as on March 31, 2021, compared to Rs. 68,089 Crore as on March 31, 2020.

The Gross Stage 3 levels stood at 9.0% as on March 31, 2021, against 8.4% as on 31 March 2020.

The impact of COVID-19 on the global economy and how governments, businesses and consumers respond is uncertain. This uncertainty is reflected in the Company's assessment of impairment loss allowance on its loans (done as per Expected Credit Loss (ECL) method in Ind AS). This allowance is subject to a number of management judgements and estimates. In relation to COVID-19, judgements and assumptions include the extent and duration of the pandemic, the impact of actions of governments and other authorities, and the responses of businesses and consumers in different industries, along with the associated impact on the global economy.

The Company has, during the year, continued to undertake a risk assessment of its credit exposures and in addition to the model determined ECL provision, it has recorded a total additional ECL overlay of Rs 996.36 crores as on March 31, 2021 (as on 31 March 2020: Rs. 574.01 crores) in the Standalone Balance sheet and Rs. 1,093.81 crores (as on 31 March 2020: Rs.728.53 crores) in the Consolidated Balance sheet, to reflect deterioration in the macroeconomic outlook. In accordance with the regulatory expectation of the Reserve Bank of India to bring down the net NPA ratio below 4%, which the management has agreed with, the Company, has recorded an additional provision of Rs.1,320.00 crores during the quarter on Stage 3 loans. Resultantly, the net NPA ratio of the Company stands at 3.97 % as at 31 March 2021.The Stage 3 provisioning coverage ratio stood at 57.9%.

The final impact of this pandemic is very uncertain and the actual impact may be different than that estimated based on the conditions prevailing as at the date of approval of these financial results. The management will continue to closely monitor the material changes in the macro-economic factors impacting the operations of the Company.

The Company's capital and debt position is strong and the ALM position is well balanced. As on March 31, 2021, the total investment book stood at Rs. 11,607 Crore compared to Rs. 5,911 Crore as on March 31, 2020. The Company has been duly servicing its debt obligations, maintains a healthy capital adequacy ratio and has adequate capital and financial resources to run its business.

The Standalone Assets Under Management (AUM) comprising loan assets and investments stood at Rs. 81,689 Crores as on March 31, 2021, as against Rs.77,160 Crores as on the corresponding date last year, registering a growth of 6%.

Shares of MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. was last trading in BSE at Rs.178.85 as compared to the previous close of Rs. 174.85. The total number of shares traded during the day was 1544461 in over 10790 trades.

The stock hit an intraday high of Rs. 180.85 and intraday low of 171.55. The net turnover during the day was Rs. 274303064.

Source : Equity Bulls

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