Mahindra & Mahindra Financial Services (M&MFIN) Q4 03/04 earnings summary

Executive summary

• FY04 disbursements rose 43% to Rs. 2,302.70 crore; total income increased 25% to Rs. 312.82 crore and PBT grew 42% to Rs. 101.87 crore.

• PAT was Rs. 65.20 crore, up 47% YoY; including Rs. 2.42 crore of excess tax provision from earlier years, Rs. 67.62 crore was available for appropriation.

Financial highlights

• Total income was Rs. 31,282.48 lakh versus Rs. 24,989.28 lakh; operating income was Rs. 30,505.21 lakh versus Rs. 24,654.79 lakh.

• PBT reached Rs. 10,187.01 lakh from Rs. 7,175.36 lakh; reported PAT was Rs. 6,520.23 lakh versus Rs. 4,434.98 lakh.

• Disbursements rose to Rs. 230,269.56 lakh from Rs. 160,985.12 lakh; contracts increased to 234,677 from 161,079.

• Assets under management increased to Rs. 282,036 lakh from Rs. 195,003 lakh; net worth rose to Rs. 25,173 lakh from Rs. 20,326 lakh.

• Finance costs were Rs. 9,687.71 lakh versus Rs. 8,569.36 lakh; average borrowing cost fell to 6.88%.

Outlook and guidance

• FY05 automobile-industry growth was expected to track the broader economy; a favourable monsoon was expected to support tractor demand.

• Strategic focus was to sustain a leading NBFC position in utility-vehicle and tractor financing across semi-urban and rural India.

• Further innovative securitisation structures were planned to help meet future funding requirements.