Mahindra & Mahindra Financial Services (M&MFIN) Q4 99/00 earnings summary

Executive summary

• FY2000 disbursements rose to Rs.757 crore from Rs.505 crore; operating income reached Rs.118.57 crore, up 24.42% YoY.

• PBT increased 25.75% to Rs.13.46 crore and PAT rose 19.52% to Rs.5.41 crore.

• Rural and semi-urban expansion supported growth despite limited improvement in the utility vehicle market; the branch network grew to 115.

Financial highlights

• Operating income was Rs.11,857.48 lakh vs Rs.9,530.32 lakh in FY1999; total expenditure was Rs.10,511.91 lakh vs Rs.8,460.32 lakh.

• PBT was Rs.1,345.57 lakh vs Rs.1,070 lakh; PAT was Rs.541.32 lakh vs Rs.452.80 lakh.

• Finance costs increased to Rs.5,875.17 lakh from Rs.4,367.15 lakh; depreciation was Rs.2,031.07 lakh vs Rs.2,100.93 lakh.

• Total assets were Rs.64,034.12 lakh vs Rs.38,858.36 lakh; net worth reached Rs.13,439.46 lakh vs Rs.6,873.24 lakh.

Outlook and guidance

• FY2001 outlook anticipated reasonable business growth, focused on vehicle and tractor finance, retail sales, and rural and semi-urban markets.

• Bank rate and Cash Reserve Ratio cuts of 1% in two stages were expected to improve funding availability and borrowing costs.

• Planned disbursements exceeded Rs.900 crore for FY2001, mainly to finance sales and purchases of vehicles and tractors.