Companies July 19, 2020 Abhinav Mehrotra Mahindra & Mahindra Financial Services – oldschoolfinance Reading Time: 3 minutes A data dump of MMFS I have collected from my financial services sector collection. Hi-Res images of the charts are available at the end of the post. Annual Figures Annual Data above, GNPAs and NNPAs are troubling, especially when vehicle financing for parent company forms a large chunk of the loan book. Provision coverage ratio has been reducing, which is a bad trend, I doubt the loan book composition has changed so drastically over the past 5 years that such a drop is warranted. One can argue that the lending is secured, but vehicles are a depreciating asset, high LTVs in this space could be problematic as well. I was not able to find the LTV norms the company follows in my data collection. I am sure it can be attained if one contacts the management. FY19 Quarterly Figures Quarterly Data for FY19, the ROA/ROE data is annualized, credit cost figures are interesting. FY20 Quarterly Figures Quarterly Data for FY20, ECL trending up. Annual Figures Book value per share has seen good growth, leverage maintained. Annual Figures Loan book doubled in 5 years. Annual Figures The sudden spike FY17 in NPA figures could be due to an acquisition or a subsidiary merging into the company. FY19 Quarterly Figures FY19 Quarterly Asset & Liability trend. FY19 Quarterly Figures FY19 was a good year for the company overall. FY20 Quarterly Figures FY20 Quarterly Asset & Liability trend. FY20 Quarterly Figures FY20 was steady overall, Q3 saw good demand for loans, while the auto sector was struggling. Would be a good exercise to check the segmented disbursements for that quarter. Annual Figures Share of MSME in the loan book is reducing. Geographical diversification is maintained. Share of Commercial vehicles in the loan book is inching up. 27% and 17% of the book is built by financing parent’s private vehicles and tractors. Majority of the capital is sourced from banks, the portion of capital sourced from mutual funds via commercial paper had reduced. Company has a 12% market share vehicle financing sector. FY17 Quarterly Figures Steady disbursement and loan book mix in FY17. FY18 Quarterly Figures Commercial and used vehicles financing gaining share in FY18 within vehicle loan book. FY19 Quarterly Figures Focus on commercial vehicles further increased in FY19. FY20 Quarterly Figures Steady mix in FY20. Unfortunately, we do not have more data to check the troublesome parts in the loan book. It would have been better to compare credit costs, NPAs, LTVs segment by segment and perhaps even by geographies. Hope this will help you form a better understanding of the company. High Resolution Images – https://drive.google.com/drive/folders/17JweMJaKHTxijvEY6wTf4MZvAHzOCdri?usp=sharing Like this: Like Loading… Also Read on FinMedium: Is Sequent Scientific The Next Important Giant in Animal Healthcare Business?Related Source link Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers. Join Them Now! Email address: Leave this field empty if you're human: Please Share :) Abhinav Mehrotra Abhinav focuses on long-term positions in deeply moated businesses in the Indian equity space. He seeks momentum in the business model of a company and in the space in which it operates.