India's non-bank lender Mahindra & Mahindra Financial Services will adopt a de-risking strategy and aims to nearly double its non-vehicle loans portfolio in the next financial year. Its  aim is 20% of the balance sheet should comprise of non-vehicle business, its focus will be on financing small and medium enterprises (SME) that include business loans, machinery, and loans against property.

Mahindra Finance aims to nearly double non-vehicle loan book in FY25

The company's disbursements for December 2023 were estimated to be around ₹4,900 crore, marking a noteworthy 5% increase over the same period in the previous year. The trend of growth persisted throughout the third quarter  FY2024, with disbursements reaching approximately ₹15,500 crore, indicating a strong 7% year-on-year growth.

Mahindra Finance's December disbursements up 7% to ₹15,500 crore

The ratio stands at 3.85 on a consolidated basis, compared to 2.95 in the previous year. The weakened ratio is a concern. Business is expanding, implying higher borrowings and therefore, possibility of the ratio slipping further.

The issuer has made timely interest payments.

Dr. Anish Shah, Chairman 

Mr. Ramesh Iyer, Vice-Chairman & Managing Director

The ratings factor in the financial and operational linkages that Mahindra Finance has with M&M and it is likely to remain the largest shareholder and maintain controlling interest in Mahindra Finance.

Mahindra Finance’s market position in the UV and tractor financing segments remains strong, given the operational linkages with M&M, which enables Mahindra Finance to access the parent’s widespread dealer network.

The company’s capital profile is also supported by its demonstrated ability to raise equity capital. In August 2020, the company raised Rs 3089 crores of equity capital through right issue which resulted in improvement in gearing ratio post completion of Rights Issue.


A stable and diversified resource profile and substantial unutilized bank limits provide significant financial flexibility to raise resources at competitive costs to meet increasing funding requirements.


8.05%Mahindra and Mahindra Financial Services Limited 24 Jul 2032

ISIN:

INE774D08MM1

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Mahindra and Mahindra Financial Services Limited

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Mahindra Finance aims to nearly double non-vehicle loan book in FY25

Mahindra Finance's December disbursements up 7% to ₹15,500 crore

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