Mahindra & Mahindra Financial Services (M&MFIN) Q4 04/05 earnings summary

Executive summary

• FY05 disbursements rose 45% to Rs. 3,343.36 crore; income from operations increased 35% to Rs. 405.92 crore and PBT rose 30% to Rs. 132.81 crore.

• Assets under management reached Rs. 4,269 crore, with 336,819 contracts and a 256-branch network at year-end.

Financial highlights

• Total income was Rs. 405.92 crore versus Rs. 301.67 crore; finance costs were Rs. 133.02 crore versus Rs. 96.88 crore.

• PBT was Rs. 132.81 crore versus Rs. 101.87 crore; profit after tax was Rs. 82.27 crore before Rs. 0.01 crore of earlier-year tax provision excess, bringing final profit to Rs. 82.28 crore.

• Business disbursements were Rs. 3,343.36 crore versus Rs. 2,302.69 crore; contracts increased to 336,819 from 234,677.

• Net worth increased to Rs. 405.01 crore from Rs. 251.55 crore; dividend on equity shares was 35% for FY05 versus 28% in FY04.

Outlook and guidance

• Plans to enter rural housing finance in FY06 through a subsidiary, leveraging the existing semi-urban and rural network.

• Exploring financing opportunities and tie-ups for parent-company products in international markets where the parent is expanding.

• Brand-building work began, alongside dealer and customer surveys to assess market potential and expectations.