Mahindra & Mahindra Financial Services Ltd Q1FY21 consolidated PAT jumps to Rs. 431.72 crore

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. has reported financial results for the period ended June 30, 2020.

Financial Results (Q1 FY 2020-21) - QoQ Comparison

The company has reported total income of Rs.3068.68 crores during the period ended June 30, 2020 as compared to Rs.3140.24 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.431.72 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.234.81 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.7 for the period ended June 30, 2020 as compared to Rs.3.81 for the period ended March 31, 2020.

Financials	Q1 FY2020-21	Q4 FY19-20	% Change
Total Income	₹ 3068.68 crs	₹ 3140.24 crs	-2.28%
Net Profit	₹ 431.72 crs	₹ 234.81 crs	83.86%
EPS	₹ 7	₹ 3.81	83.73%

Financial Results (Q1 FY 2020-21) - YoY Comparison

The company has reported total income of Rs.3068.68 crores during the period ended June 30, 2020 as compared to Rs.2838.42 crores during the period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.431.72 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.107.23 crores for the period ended June 30, 2019.

The company has reported EPS of Rs.7 for the period ended June 30, 2020 as compared to Rs.1.74 for the period ended June 30, 2019.

Financials	Q1 FY2020-21	Q1 FY2019-20	% Change
Total Income	₹ 3068.68 crs	₹ 2838.42 crs	8.11%
Net Profit	₹ 431.72 crs	₹ 107.23 crs	302.61%
EPS	₹ 7	₹ 1.74	302.3%

The Company, on 21 June 2019, along with Mahindra Asset Management Company Private Limited (MAMCPL) and Mahindra Trustee Company Private Limited (MTCPL), then wholly-owned subsidiaries of the Company, had entered in to a share subscription agreement and shareholders' agreement to form a 51:49 Joint Venture with Manulife Asset Management (Singapore) Pte. Ltd. (Manulife). Pursuant to these agreements, Manulife has made an equity investment aggregating to US $ 35.00 million to acquire 49% of the share capital of MAMCPL & MTCPL.

The transaction was settled on 29 April 2020 in accordance with share subscription and shareholders' agreements to acquire a 49% stake in MAMCPL and MTCPL by Manulife. The said agreements have also provided for sale of certain number of equity shares of MAMCPL by MMFSL at an agreed valuation within the overall stake divestment of 49% to Manulife. Accordingly, under the sale transaction, 1,47,00,000 equity shares of MAMCPL, equivalent to 7% of the fully paid up equity share capital of MAMCPL, for a consideration of Rs. 2080.10 lakhs (equivalent to USD 2.73 million), have been transferred in dematerialized form to Manulife. On this sale transaction, the Company has recognized a pre-tax profit of Rs.610.00 lakhs on a standalone basis, which is included under exceptional item in the statement of profit and loss for the quarter ended 30 June 2020.

Consequent to the above, the shareholding of the Company in MAMCPL and MTCPL has come down from 100% to 51% of the share capital respectively. The erstwhile names of MAMCPL and MTCPL have been changed to Mahindra Manulife Investment Management Private Limited (MMIMPL) and Mahindra Manulife Trustee Private Limited (MMTPL), respectively. In the Consolidated financial statements for the quarter ended 30 June 2020, MMIMPL and MMTPL have been consolidated as joint ventures under equity method of accounting. As a result of this, the Company has recognized a pre-tax profit of Rs. 22,854.07 lakhs, as an exceptional item in the consolidated statement of profit and loss for the quarter ended 30 June 2020.

Shares of MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD. was last trading in BSE at Rs.207.9 as compared to the previous close of Rs. 201.7. The total number of shares traded during the day was 691902 in over 6939 trades.

The stock hit an intraday high of Rs. 208.55 and intraday low of 199.8. The net turnover during the day was Rs. 141305520.

Source : Equity Bulls

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