MMFS by factica

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									                                                                                             Regd off: Gateway Building, Apollo Bunder, Mumbai - 400 001
MAHINDRA & MAHINDRA FINANCIAL SERVICES                                                       E-Mail:    pardiwala.arnavaz@mahindra.com
                                                                                             Web site: www.mahindrafinance.com
                                                                                             Telephone: (022) 6652 6000 Fax: (022) 2497 2741
INVESTMENT & FINANCE                                                           MAHINDRA      Tr agent: Karvy Computershare, Plot 17-24, Madhapur, Hyderabad - 81
Chairman: Bharat Doshi                                                          SEC: Arnavaz M. Pardiwala                              AUD: B. K. Khare & Co.
Yr of Inc   B. Code      BL. Code     F.V.         Price        % ch 1-m        % ch 12-m      P/E      P/CF            Yield         Mkt cap                Vol.              ISIN
 1991   532720           MMFS:IN      10           212.4         -15.6            -12.3        6.2          9.4          2.6          20,576.7               29.5         INE774D01016
SHAREHOLDING                                                     FX Transaction (FY09)                              ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters           : 61.3%               Exports (fob)          Rs m         0               (Rs)
Foreign collaborators      :  0.0%               Imports (cif)          Rs m         0
Indian inst/Mut Fund       :  3.5%               Fx inflow              Rs m         0         425
FIIs/GDR                   : 28.2%               Fx outflow             Rs m        11                                                                       DAILY
Free float                 :  7.1%               Net fx                 Rs m       -11
Shareholders               : 29,220                                                                                                                          100 DMA
                                                                                               350
                           No. of months                  12            12             12
                             Year ending            31/03/07      31/03/08       31/03/09
EQUITY SHARE DATA
                                                                                               275
High                                  Rs                 298            368           314
Low                                   Rs                 137            212           162
Income per share                      Rs                99.6          125.5         142.6
Earnings per share                    Rs                16.0           18.7          22.7      200
Cash flow per share                   Rs                32.9           28.9          32.8
Dividends per share                   Rs                4.00           4.50          5.50
Avg Dividend yield                    %                  1.8            1.6           2.3
                                                                                               125
Book value per share                  Rs                93.1          136.4         153.0
Shares outstanding (eoy)              m                84.02          96.90         96.90       Aug-06              May-07            Feb-08               Nov-08              Aug-09
Bonus/Rights/Conversions                               ESOS       PA,ESOS                -
Avg Price / Income ratio              x                   2.2            2.3           1.7                               No. of months                 12            12              12
Avg P/E ratio                         x                 13.6           15.5          10.5                                  Year ending           31/03/07      31/03/08        31/03/09
                                                                                              CASH FLOW
Avg P/CF ratio                        x                   7.0            6.4           4.5
Avg Price/Bookvalue ratio             x                  2.3             2.1           1.6    From Operations                         Rs   m     -16,539            -13,272      -8,966
Dividend payout                       %                 24.9           24.1          24.3     From Investments                        Rs   m       2,629                 38      -1,071
Avg Mkt Cap                           Rs m            18,274         28,101        23,062     From Financial Activity                 Rs   m      14,885             13,182       9,850
No. of employees                      `000                  3              4             5    Net Cashflow                            Rs   m         975                -53        -186
Total wages & salary                  Rs m               684          1,032         1,286
Avg. income/employee                  Rs Th          2,998.2        2,646.1       2,786.2                                       INTERIM RESULTS
Avg. wages/employee                   Rs Th            245.1          224.5         259.3                                           2QFY09  3QFY09              4QFY09          1QFY10
Avg. net profit/employee              Rs Th            483.0          394.0         442.8     Operating income            Rs    m     3,276   3,532               3,893           3,202
                                                                                              Gross Profit                Rs    m     1,945   2,098               2,596           1,969
INCOME DATA                                                                                   Gross profit margin         %            59.4     59.4               66.7            61.5
Interest income                       Rs     m         8,368        12,164         13,817     Net profit                  Rs    m       352      445              1,081             400
Other income                          Rs     m           104           203            187     Net profit margin           %            10.7     12.6               27.8            12.5
Interest expense                      Rs     m         3,170         4,466          5,002
Net interest income                   Rs     m         5,198         7,698          8,815                                           KEY DATA
Operating expense                     Rs     m         1,964         2,561          2,745     Parameters                          Unit              FY07              FY08        FY09
Gross profit                          Rs     m         3,234         5,137          6,070     Branches                            nos.                403               436         436
Gross profit margin                   %                 38.6          42.2           43.9     Employees                           nos.              2,791             4,431       4,959
Provisions/contingencies              Rs     m         1,270         2,552          2,913     Assets financed / branch            Rs m                135             150.0       149.6
Profit before tax                     Rs     m         2,068         2,788          3,344     Profit / employee                   Rs m                 0.5               0.4         0.4
Extraordinary Inc (Exp)               Rs     m             0             0              0     NIM                                 %                    9.5               6.7         6.9
Minority Interest                     Rs     m             0             0              0
                                                                                                                                     NOTES
Prior Period Items                    Rs     m             0             0              0
Tax                                   Rs     m           720           977          1,148    Mahindra & Mahindra Financial Services Ltd (MMFSL), a subsidiary of Mahindra &
Profit after tax                      Rs     m         1,348         1,811          2,196    Mahindra, is a non-banking finance company (NBFC) focused on the rural and semi-
                                                                                             urban sector providing finance for utility vehicles, tractors and cars. MMFSL seeks to
Net profit margin                     %                 16.1          14.9           15.9
                                                                                             position itself between the organised banking sector and local moneylenders in the
BALANCE SHEET DATA                                                                           rural and semi-urban areas. Though the company primarily finances M&M's vehicles,
                                                                                             it has continued to expand its lending in respect of non-M&M vehicles. MMFSL
Advances                              Rs     m        58,663        66,475         68,706    serviced approximately 0.6 m customers in FY09.
Yield on advances                     %                 13.2          16.5           18.3
Net Interest Margin                   %                   9.5           6.7            6.9   The economic slowdown as well as the excess inventory pile up in the automobile
Net fixed assets                      Rs     m           277           314            363    sector added up to poor demand for loans from NBFCs like Mahindra Finance.
Share capital                         Rs     m           840           953            957    Mahindra Finance, which is predominantly a financer of tractors and utility vehicles
Free reserves                         Rs     m         5,990        10,923         12,092    sold by M&M, saw the proportion of disbursements towards utility vehicles increase
Net worth                             Rs     m         7,821        13,222         14,824    from 34% in March 2008 to 40% in March 2009. This was primarily due to the new
Borrowings                            Rs     m        41,468        25,028         27,631    launches in this segment. The proportion of disbursements towards tractors (22%)
Investments                           Rs     m           264             95           972    and commercial vehicles (6%) dropped while that towards cars increased marginally
                                                                                             from 23% to 25% during the period. The company grew its advances by merely 3%
Total assets                          Rs     m        62,094        69,114         72,891
                                                                                             YoY in FY09. Also, the rise in interest rates had led to higher delinquencies for the
Debt/equity ratio                     x                   5.3           1.9            1.9
                                                                                             NBFC in the past few quarters. The NPAs at the gross level moved up from 7.6% in
Return on assets                      %                   2.2           2.6            3.0   FY08 to 8.7% in FY09.
Return on equity                      %                 17.2          13.7           14.8
Capital adequacy ratio                %                 14.7          20.7           19.4    Although approximately 55% to 60% of MMFSL's customer base comprises of M&M
Net NPAs                              %                   2.5           2.9            2.6   customers, the NBFC plans to expand its non-M&M customer base. The NBFC,
                                                                                             through a combination of network expansion and dealer associations, is envisaging
                                                                                             higher growth rates in its customer and product portfolio. Towards this, it has entered
                                                                                             into associations with other major vehicle manufacturers. The strategy also includes
                                                                                             providing new products such as personal loans, mutual fund distribution and housing
                                                                                             loans.
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