Mahindra & Mahindra Financial Services (M&MFIN) Q4 02/03 earnings summary

Executive summary

• FY2002-03 disbursements reached ₹1,609 crore, up 38% YoY across 49,752 new contracts; income rose 31% and PAT rose 60%.

• Branch expansion added 45 locations, taking the network to 196 and extending presence across India, including the eastern region.

Financial highlights

• Total income was ₹24,989.28 lakh vs ₹19,133.95 lakh YoY; PBT was ₹7,175.36 lakh vs ₹4,342.05 lakh, up 65%.

• PAT was ₹4,434.98 lakh vs ₹2,772.39 lakh, up 60%; profit available for appropriation was ₹6,734.96 lakh.

• Loan disbursements rose to ₹160,985.12 lakh from ₹116,675.29 lakh; total assets reached ₹180,208 lakh vs ₹133,323 lakh.

• Additional NPA provision of ₹1,693.90 lakh exceeded RBI-prescribed norms; this included ₹414.86 lakh for securitised future receivables.

Outlook and guidance

• Loan disbursements to non-competitive passenger cars and pre-used vehicles were expected to grow in FY2003-04.

• Management expected RBI’s 25 bps Bank Rate and CRR cuts, plus a soft and flexible rate environment, to reduce borrowing costs and improve fund availability.

• Life insurance distribution was planned to expand across more regions following encouraging response to Mahindra Loan Suraksha.