Q4 2024 Mahindra and Mahindra Financial Services Ltd Earnings Call Transcript
Key Points
- Mahindra & Mahindra Financial Services Ltd (BOM:532720) achieved a significant milestone by crossing the INR1 lakh crore mark of assets under management, closing the quarter at INR1,002,597 crore, a 24% year-over-year growth.
- The company reported strong revenue growth of 22% on a quarterly year-over-year basis and 23% on a full-year basis.
- The gross stage 3 (GS3) numbers showed a healthy decrease from 4% in Q3 to 3.4% in Q4, indicating improved asset quality.
- The company has implemented heightened due diligence around customer onboarding, including centralized processes, to mitigate risks of fraud.
- Mahindra & Mahindra Financial Services Ltd (BOM:532720) is actively working on diversifying its liability mix to optimize overall cost of funds.
- The company detected a significant fraud at its Iswal branch involving extreme collusion among 20+ employees, five vehicle dealerships, and some bank employees, leading to INR136 crores of provisions.
- The cost of funds for the quarter year-over-year grew by 30% and on a full-year basis by 40%, impacting net interest margins (NIMs).
- The company's PAT (Profit After Tax) degrew year-over-year by 10% on a quarterly basis and 11% on a full-year basis.
- The tractor segment witnessed a degrowth due to an industry-wide contraction, although the company's market share remained stable.
- The company has revised its ROA (Return on Assets) target from 2.5% to 2.2% for FY25, citing challenges in achieving the original target due to elevated cost of funds.
Good evening, ladies and gentlemen. Please note this call is not for media representative. All such individuals are requested to disconnect now and a replay of this call will not be available to media. Good day, and welcome to the Mahindra & Mahindra Financial Services Limited Q4 FY24 earnings conference call.
This call will be recorded, and the recording will be made public by the company pursuant to its regulatory obligations. Certain personal information such as your name and organization may be asked during the call. If you do not wish to be disclosed, please immediately disconnect this call.
(Operator Instructions) Please note that this conference is being recorded. Before proceeding, I will read out the Safe Harbor statement. Please note that certain statement (technical difficulty) meeting with regard to our future growth prospects are forward-looking statements, which involves a number of risks and uncertainties that could cause actual results to differ materially for those in such forward-looking statements.
I now hand the call over to Mr. Jigar Johny, please go
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