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 unaudited financial results for the second quarter and half year ended September 30, 2018.
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 quarter and half year are prepared and reported in compliance with Ind AS requirements. The figures for the same quarter previous year have also been restated as per Ind AS.
F-2019 Q2 Standalone Results
The Total Income increased by 39% at Rs.2,148 Crores during the quarter ended September 30, 2018, as against Rs.1,540 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.381 Crores during the quarter ended September 30, 2018, as against Rs.164 Crores during the corresponding period last year, registering a growth of 132% over the same period previous year.
F-2019 H1 Standalone Results
The Total Income increased by 34% at Rs.4,088 Crores during the half year ended September 30, 2018, as against Rs.3,048 Crores in the corresponding period last year. The Profit After Tax (PAT) stood at Rs.650 Crores during the half year ended September 30, 2018, as against Rs.365 Crores during the corresponding period last year, registering a growth of 78% over the same period previous year.
Operations
During the period ended September 30, 2018, the Company’s customer base has crossed 5.6 Million. The Total value of assets financed for the half year ended September 30, 2018, was Rs.21,194 Crores as against Rs.15,206 Crores during the same period previous year, registering a growth of 39%.
The Total Assets Under Management (AUM) stood at Rs.59,473 Crores as on September 30, 2018, as against Rs.47,213 Crores as on September 30, 2017, registering a growth of 26%.
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 9.0% for the period ended September 30, 2018, from 13.1% during the corresponding period last year. The Net Stage 3 levels have gone down to 6.0% for the period ended
September 30, 2018, from 8.8% during the corresponding period last year. The Stage 3 provisioning coverage ratio stood at 34.9%.
The Company’s capital and debt position is strong and the ALM position is well balanced. The Company is confident of meeting its obligations towards discharging its liabilities.