4th May 2024

To,

BSE Limited, (Scrip Code: 532720)

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort,

Mumbai - 400 001

National Stock Exchange of India Ltd., (Symbol: M&MFIN)

Exchange Plaza, 5th Floor, Plot No. C/1, "G" Block,

Bandra - Kurla Complex, Bandra (East),

Mumbai - 400 051

Dear Sir/ Madam,

Sub: Press Release - Audited Standalone and Consolidated financial results of the Company for the fourth quarter and financial year ended 31st March 2024

Please find enclosed Press Release on the audited standalone and consolidated financial results of the Company for the fourth quarter and financial year ended 31st March 2024.

This intimation along with the press Release is also being uploaded on the Company's website: https://www.mahindrafinance.com/investor-relations/regulatory-filings

The meeting of the Board of Directors commenced at 8:40 p.m. (IST) and concluded at 10:20 p.m. (IST).

Kindly take the same on record.

Thanking you,

For Mahindra & Mahindra Financial Services Limited

Brijbala

Mohanlal

Batwal

Digitally signed by Brijbala Mohanlal Batwal

Date: 2024.05.04 22:58:29 +05'30'

Brijbala Batwal

Company Secretary

FCS No.: 5220

Enclosure: As above

PRESS RELEASE

Financial Results - Quarter 4 FY23-24, Standalone & Consolidated Results

Mumbai, May 4, 2024: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services in the rural and semi- urban markets, at its meeting held today, announced the audited financial results for the year ended March 31, 2024. The Board has proposed a final dividend of Rs. 6.30 per fully paid equity share of the Company.

Standalone:

Key Points: Steady performance for the quarter & YTD

  • AUM (Business assets) crosses 1 Lakh crores, Rs 1,02,597 crores, YoY 24%
  • Disbursement: FY24 Rs 56,208 crores, YoY 13%. Q4FY24 Rs 15,292 crores, YoY 11%
  • Continued Leadership in Wheels: Passenger vehicles, Pre-owned vehicles and Tractors.
  • NII margins improved QoQ 7.1% vs 6.8%. FY24 YoY 6.8% vs 7.6%
  • Robust Asset quality: GS2%+GS3% < 9%. Stage-3 @3.4% vs. 4.0% in Dec-2023
  • Credit Cost: YoY 1.7% vs 1.2%. (FY24 target 1.5% - 1.7% achieved)
  • A one-time provision of Rs 136 crores towards fraud at one of the Company's branches
  • Capital Adequacy healthy at 18.9% - Tier-1 Capital @ 16.4%. Provision coverage on Stage 3 loans remained prudent at 63.2%. Total liquidity buffer comfortable at ~Rs. 7,950 crores

FY 2024 Q4/12M Standalone Results:

Q4FY24 Results

Q4

Q4

YoY %

Q3

QoQ%

(Rs. Crores)

FY24

FY23

FY24

Total Income (TI)

3,706

3,057

21%

3,490

6%

Net Interest Income (NII)

1,723

14%

1,815

9%

1,971

NII Margin

7.1%

7.4%

6.8%

(as % of Avg. Total Assets)

Pre-Provisioning Operating Profit

1,173

944

24%

1062

10%

(PPOP)

Credit Costs

341

0

328

4%

Credit Costs

1.2%

0.0%

1.2%

(as % of Avg. Total Assets)

Profit After Tax

619

684

-10%

553

12%

ROA (as % of Avg. Total Assets)

2.2%

2.9%

2.1%

Disbursements

15,292

13,778

11%

15,436

-1%

Gross Loan Book (YTD)

1,02,597

82,770

24%

97,048

6%

FY24

FY23

YoY %

13,562

11,056

23%

6,479

10%

7,135

6.8%

7.6%

4,178

3,752

11%

1,823

999

82%

1.7%

1.2%

1,760

1,984

-11%

1.7%

2.3%

56,208

49,541

13%

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

Operations:

The financial year 2023-24 (FY24) witnessed broad-based growth with disbursements of Rs. 56,208 crores, delivering a growth of 13% YoY. In FY24, the company strengthened its position in the financing of passenger vehicles, pre-owned vehicles & tractors. Growth in non- vehicle businesses such as SMEs, digital finance, leasing, and other lending and non-lending financial solutions segments contributed towards achieving steady annual disbursement numbers. This positive loan growth trend also led to expansion of business assets, now standing at Rs. 1,02,597 crores, reflecting a 24% YoY growth.

The collection efficiency for the quarter is recorded at 98%, showing improvement over the levels observed in Q1, Q2, and Q3 FY24. With a focus on improving underwriting standards and addressing early bucket delinquency, the Company has seen continual improvement in asset quality. Stage-3 is at 3.4% (compared to 4.0% as of December 31, 2023, and 4.5% as of March 31, 2023), and Stage-2 is at 5.0% (compared to 6.0% both as of December 31, 2023, and March 31, 2023). Stage-2 and Stage-3 together is at 8.4% (compared to 10.4% as of March 31, 2023).

In aligning with the strategic objectives for FY 2025, the company's focus remains on fostering profitable and sustainable growth. Emphasizing diversification, Mahindra Finance is committed to expanding its footprint in new business categories. As a part of this initiative, the company is diversifying its product lines into various portfolios like SME lending, LAP and Leasing (Quiklyz). The plan is to grow the non-vehicle finance segment to 15% of the AUM over the medium term.

To diversify within the vehicle finance book, Mahindra Finance has been making investments in the used vehicle category. The disbursements for used vehicle finance have grown by 18% in FY24. The company continues to hold a strong position in the pre-owned vehicle business and has 2 partnerships that are steadily growing, namely, 'car&bike' and 'CarDekho'. The company has also made a strategic expansion into the prime customer segment for vehicle loans leading to a balanced and stable asset quality.

With an aim to foster financial inclusion, Mahindra Finance recently partnered with digital MSME lender 'Lendingkart' under a co-lending arrangement to offer business loans to MSMEs. This co-lending initiative will transform credit decisioning, boost accessibility and create financial agility in this space.

Partnerships will be pivotal in realizing the Company's vision of offering financial solutions to emerging India. The Company has already established collaborations with two major commercial banks, namely State Bank of India (SBI) and Bank of Baroda. These strategic alliances are poised to broaden the company's distribution network, ensure robust asset growth, and increase profitability.

Mahindra Finance has also unveiled plans to enter the insurance sector through partnerships with a few insurance providers. The Company aims to capitalize on the insurance business by leveraging its extensive presence in semi-urban and rural India. Initial investments will be directed toward technology, manpower, and certification.

Digital transformation stands as a pivotal metric for Mahindra Finance, aiming to deliver seamless customer experiences, quicker turnaround times, and enhanced self-service journeys across products with employee experience being central to this journey. With a strong

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

focus on data, AI/ML, and analytics, the transformation aims to drive hyper-personalization, enhance asset quality, and improve underwriting processes.

The company is enhancing its investment in Technology, Digital and Data. Going forward, these investments will provide significant benefits for sharper risk practices, customer engagement & service capabilities aiding overall efficiency levels across various customer segments and products. These transformation initiatives are set to roll out in a phased manner in FY25.

Mahindra Finance has now partnered with IBM to develop a 'Super App' that will provide 24x7 digital access for availing and managing products and solutions in a secure, streamlined, and user-friendly manner.

Mahindra Finance is one of the few deposit taking NBFCs and has plans to further strengthen its Fixed Deposit (FD) Portfolio. The company's FDs are an attractive investment avenue, with a AAA Rating by CRISIL & India Ratings indicating highest safety standards. As of March 31, 2024, FDs as a percentage of total borrowings were at 7.8% compared to 7.4% as of March 31, 2023.

Amidst sustained profitable growth and a solidified balance sheet, the company's capital adequacy remains robust, currently standing at 18.9%. Additionally, upholding a resilient liquidity position and maintaining a comfortable liquidity chest at ~Rs. 7,950 crores.

Intimation of fraud:

The company had recently intimated the Stock Exchanges reporting a fraud detection at one of the branches in North East. Further details are as follows:

  • The incident of fraud is limited to Aizawl branch, Mizoram and was identified during management review of the branch. The fraud relates to retail vehicle loans disbursed by the Company. This is a case of extreme collusion between Company's employees, with segregated duties, and external parties including vehicle dealers and bank employees. The fraud involved forgery of KYC & other asset related documents leading to embezzlement of Company funds.
  • The Company has appointed a law firm and an accounting firm to undertake a fact- finding assessment of the aforesaid suspected irregularities ("Assessment"). Based on the results of the Assessment by the accounting firm and the management, 2887 loan accounts were identified by the Management as potentially fraudulent in nature. These loans had an outstanding net recoverable balance of Rs. 135.9 crores as of 31st March 2024, which have been fully provided.
  • The Company has carried out an exhaustive analysis of customer contracts across the portfolio at an all-India level and has confirmed no instances of similar fraud elsewhere.
  • As a proactive step, the Company has identified a few key initiatives to further strengthen controls, including but not limited to accelerating the timeline for centralization of document reviews and implementing digital due diligence tools for customer on-boarding.

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

Mahindra Finance remains committed to upholding its brand recognition and value. The Company is reinforcing its commitment to trust, integrity and transparency through enhanced measures for compliance, risk management, and governance.

Consolidated:

FY 2024 Q4/12M Consolidated Results

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

Q3 FY24

QoQ%

(Rs. Crores)

Total Income (TI)

4,333

3,536

23%

4,137

5%

Profit After Tax

675

-1%

623

8%

671

Disbursements

16,174

14,583

11%

17,048

-5%

FY24 FY23 YoY %

15,97012,832 24%

1,9432,071 -6%

58,647 51,77013%

Subsidiaries:

Key Points:

  • Mahindra Insurance Brokers: Total Income > Rs 1,000 crores, PAT > Rs 100 crores
  • Mahindra Rural Housing: Asset Quality improvement: Gross Stage 3 @ 9%
  • Mahindra Manulife: AUM crosses Rs 20,000 crores (On 1st April 2024)

Mahindra Rural Housing Finance Limited (MRHFL)

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(Rs. Crores)

Total Income

310.3

354.7

-13%

Profit Before Tax

0.6

-31.7

102%

Profit After Tax

1.1

-25.9

104%

Loans & Advances (net)

6,933

6,845

1%

Gross Stage 3 %

9.0%

10.5%

Mahindra Insurance Brokers Limited (MIBL)

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(Rs. Crores)

Total Income

311.4

121.0

157%

Profit Before Tax

46.3

17.0

172%

Profit After Tax

34.2

12.7

169%

Gross Premium

1,387

1,226

13%

MMFSL holding 98.43%

FY24

FY23

YoY %

1,294.4

1,349.8

-4%

4.8

26.3

-82%

3.6

21.7

-83%

6,933

6,845

1%

9.0% 10.5%

MMFSL holding 100%

FY24 FY23 YoY %

1,095.0426.5 157%

167.5 46.1 263%

123.5 34.4 259%

4,556 4,037 13%

Mahindra Manulife Investment Management Private Limited (MMIMPL) MMFSL holding 51%

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(Rs. Crores)

Total Income

18.7

14.2

32%

Profit After Tax

-6.7

-5.2

-29%

Average Overall AUM

19,092

9,821

94%

Average Equity AUM

16,936

8,292

104%

FY24 FY23 YoY %

63.5 44.1 44%

-27.3-30.811%

19,0929,821 94%

16,9368,292 104%

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

Mahindra Manulife Trustee Private Limited (MMTPL)

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(Rs. Crores)

Total Income

0.4

0.1

300%

Profit After Tax

0.2

0

MMFSL holding 51%

FY24

FY23

YoY %

1.2

0.8

50%

0.5

0.1

400%

Mahindra Ideal Finance Ltd (MIFL)

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(in LKR Mn)

Total Income

591

576

3%

Profit Before Tax

88

93

-6%

Profit After Tax

24

40

-40%

Loans & Advances (net)

8,543

7,124

20%

(LKR Closing Exchange Rate 1 LKR = 0.2609 INR)

MMFSL holding 58.2%

FY24 FY23 YoY %

2,309 1,924 20%

334 248 35%

103 87 19%

8,543 7,124 20%

Joint Venture / Associate:

Mahindra Finance USA, LLC (MFUSA)

Q4FY24 Results

Q4 FY24

Q4 FY23

YoY %

(in USD Mn)

Total Income

20.8

18.0

16%

Profit Before Tax

6.2

4.9

27%

Profit After Tax

4.6

-3.7

MMFSL holding 49%

FY24

FY23

YoY %

81.3

64.8

26%

22.9

19.8

16%

17.2

15.0

15%

(USD Closing Exchange Rate 1 USD = INR 82.76)

About Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 10 million customers and has an AUM of over USD 11 Billion. The Company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits. The Company has 1,369 offices and reaches out to customers spread over 3,80,000 villages and 7,000 towns across the country.

Mahindra Finance has been ranked 59th among India's Best Companies to Work 2023 by Great Place to Work Institute.

Mahindra Insurance Brokers Limited (MIBL) a wholly owned subsidiary, is the Company's Insurance Broking subsidiary is a licensed Composite Broker providing Direct and Reinsurance broking services.

Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of Mahindra Finance provides loans for purchase, renovation, construction of houses to individuals in the rural and semi- urban areas of the country.

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

Mahindra Finance CSR Foundation is a wholly owned subsidiary company, under the provisions of section 8 of the Companies Act, 2013 for undertaking the CSR activities of the Company and its subsidiaries.

Mahindra Manulife Investment Management Private Limited acts as the Investment Manager of Mahindra Manulife Mutual Fund.

Mahindra Manulife Trustee Private Limited (MMTPL), acts as a Trustee to Mahindra Manulife Mutual Fund.

Mahindra Ideal Finance Limited (MIFL) is a subsidiary of the Company in Sri Lanka, in which the Company owns 58.2% stake. MIFL focuses on providing a diversified suite of financial services to the Sri Lankan market.

The Company has a Joint Venture in the US, Mahindra Finance USA LLC, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra vehicles in the US.

Learn more about Mahindra Finance on www.mahindrafinance.com / Twitter and Facebook: @MahindraFin

About Mahindra

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260,000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

Learn more about Mahindra on www.mahindra.com/ Twitter and Facebook: @MahindraRise/ For updates subscribe to https://www.mahindra.com/news-room

Media Contact:

Mohan Nair

Head - Communications

Mahindra & Mahindra Financial Services Limited

E-mail:nair.mohan@mahindra.com

Mobile #: +91 9004012237

Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001 India | CIN : L65921MH1991PLC059642

Tel: +91 22 2289 5500 | Fax: +91 22 2287 5485 | www.mahindrafinance.com | Email: investorhelpline_mmfsl@mahindra.com

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Mahindra & Mahindra Financial Services Limited published this content on 04 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2024 19:00:05 UTC.