Mahindra & Mahindra Financial Services – oldschoolfinance

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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.

Consol % Annual

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.

Consol % FY19 Q

FY19 Quarterly Figures

Quarterly Data for FY19, the ROA/ROE data is annualized, credit cost figures are interesting.

Consol % FY20 Q

FY20 Quarterly Figures

Quarterly Data for FY20, ECL trending up.

Consol ABS Annual L+BVPS+DE

Annual Figures

Book value per share has seen good growth, leverage maintained.

Consol ABS Annual LB+B

Annual Figures

Loan book doubled in 5 years.

Consol ABS Annual

Annual Figures

The sudden spike FY17 in NPA figures could be due to an acquisition or a subsidiary merging into the company.

Consol ABS FY19 Q LB+B

FY19 Quarterly Figures

FY19 Quarterly Asset & Liability trend.

Consol ABS FY19 Q

FY19 Quarterly Figures

FY19 was a good year for the company overall.

Consol ABS FY20 Q LB+B

FY20 Quarterly Figures

FY20 Quarterly Asset & Liability trend.

Consol ABS FY20 Q

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.

Seg % Annual

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.

Seg % FY17 Q

FY17 Quarterly Figures

Steady disbursement and loan book mix in FY17.

Seg % FY18 Q

FY18 Quarterly Figures

Commercial and used vehicles financing gaining share in FY18 within vehicle loan book.

Seg % FY19 Q

FY19 Quarterly Figures

Focus on commercial vehicles further increased in FY19.

Seg % FY20 Q

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

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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.
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