Mahindra & Mahindra Finance Q3FY23 Earnings

Early in the 1990s, Mahindra Finance was founded as a captive lender for Mahindra Utility Vehicles. The firm has expanded into a financial services provider with such a full suite of financial products designed for the neglected client in under-penetrated remote areas, including Mahindra UVs, tractors, and non-Mahindra items.

The product line consists of automobiles and SME finance, that also includes project financing, machinery financing, working capital financing, and bill discounting facilities for SMEs. Automotive financing includes financing for passenger vehicles, trucks, utility vehicles, farm vehicles, commercial vehicles, and construction equipment. Additionally, the business offers fixed deposits, personal loans, and mutual fund distribution to suit its particular clientele.

Financial Results:

Mahindra & Mahindra Fin. Services Ltd.’s revenue in Q3FY23 rose 12% to ₹ 3,324 crores. Consolidated Profit After Tax came at ₹ 664 crores showcasing a 33% fall on an YoY basis. In this quarter’s results, the reports suggested that the fall in profits are due to the drastic increase in expenses.

“So, over the last 12 to 18 months, we have been very clear about the path that Mahindra Finance is headed in, and that has been around improvement in asset quality, ensuring that we significantly reduce the volatility in asset quality, in driving growth, in bringing in a much stronger management team as the business moves into the future, and to look at data and digital in a way that can really help Mahindra Finance be a leader in technology in financial services. So these are the 4 areas of focus that we’ve had over the last 12 to 18 months.”

– Dr. Anish Shah, Managing Director & Chairman (Q3FY23 Earnings Call)