Mahindra Rural Housing Finance Limited - Unlisted Shares
Fundamentals
- Current Price
- ₹0
- Market Cap
- 0
- ISIN
- INE950O01019
- Face Value
- ₹10
- P/E Ratio
- 0
- EPS
- 0.29
- P/B Ratio
- 0
- Book Value
- 121.09
- Debt / Equity Ratio
- 2.15
Key Financials
Profit & Loss
| Metric | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|
| Revenue from Operations | 1,272.02 | 1,333.66 | 1,376.94 | 1,454.30 |
| Growth % | -4.62% | -3.14% | -5.32% | - |
| Operating Expenses | 720.46 | 772.13 | 786.58 | 640.75 |
| Growth % | -6.69% | -1.84% | 22.76% | - |
| Operating Profit | 551.56 | 561.54 | 590.36 | 813.55 |
| Op. Profit Margin % | 43.36% | 42.10% | 42.87% | 55.94% |
| Other Income | 22.41 | 16.14 | 0.55 | 0.37 |
| Finance Costs | 536.26 | 525.13 | 518.08 | 602.65 |
| Depreciation | 32.88 | 26.26 | 15.10 | 15.96 |
| Profit Before Tax | 4.84 | 26.29 | 57.72 | 195.31 |
| Tax | 1.2 | 4.54 | 9.99 | 44.30 |
| Tax % | 0.10% | 0.34% | 0.73% | 3.05% |
| Profit After Tax | 3.60 | 21.75 | 47.73 | 151.01 |
| Growth % | -83.42% | -54.44% | -68.39% | - |
| PAT % | 0.28% | 1.63% | 3.47% | 10.38% |
| Diluted EPS | 0.29 | 1.78 | 3.92 | 12.35 |
Company Financials
| Metric | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|
| Equity Capital | 122.33 | 122.14 | 121.87 | 121.66 |
| Reserves | 1365.76 | 1359.49 | 1332.64 | 1281.08 |
| Total Equity | 1,488.09 | 1481.63 | 1454.51 | 1402.74 |
| Borrowings | 2,720.69 | 3191.63 | 2834.77 | 3655.60 |
| Provision | - | - | - | - |
| Other Non-Current Liabilities | 4,002.60 | 4023.19 | 4189.40 | 3737.88 |
| Total financial Liabilities | 6,723.29 | 7214.82 | 7024.17 | 7393.48 |
| Borrowings | - | - | - | - |
| Other Current Liabilities | 19.53 | 21.32 | 34.92 | 19.90 |
| Total non financial Liabilities | 19.53 | 21.32 | 34.92 | 19.90 |
| Equity + Liabilities | 8,230.91 | 8717.77 | 8513.60 | 8816.12 |
| Fixed Assets (incl. WIP) | 162.49 | 166.77 | 76.88 | 89.28 |
| Other Non Current Assets | 138.06 | 129.50 | 121.19 | 86.76 |
| Total Non financial Assets | 300.55 | 296.27 | 198.07 | 176.04 |
| Trade Receivables | - | - | - | - |
| Cash & Cash Equivalents | 740.46 | 1203.35 | 655.14 | 692.51 |
| Other Current Assets | 7,189.90 | 7218.15 | 7660.39 | 7947.57 |
| Total financial Assets | 7,930.36 | 8421.50 | 8315.53 | 8640.08 |
| Total Assets | 8,230.91 | 8,717.77 | 8,513.60 | 8,816.12 |
Shareholding Pattern
- Promoter
- 98.43%
- Non-Promoter Non-Public (Shares are held by MRHFL ESOP Trust)
- 0.45%
- Others (MRHFL Employees pursuant to the MRHFL ESOP Scheme)
- 1.12%
Strengths & Weaknesses
Strengths
- Strong Parentage & Support: MRHFL, a subsidiary of MMFSL, benefits from strong capital, managerial backing, and Mahindra’s brand, leveraging MMFSL’s network for rural expansion.
- Strong Capitalization: Regular equity infusions (₹130 Cr in FY18, ₹150 Cr in FY19) improved gearing to 4.6x (FY24) with a CAR of 40.35%, well above regulatory norms.
- Robust Liquidity: MRHFL enjoys strong financial flexibility with ₹795 Cr in cash, ₹370 Cr in unused bank lines, and a ₹900 Cr contingent line from MMFSL. No negative mismatches (FY24).
- Diversified Funding: Funding mix (FY24) includes 37% bank loans, 47% NCDs, 7% subordinated debt, 3% CPs, and 6% ICDs, benefiting from Mahindra Group’s financial strength.
Weaknesses
- Moderate financial risk profile: MRHFL’s PAT declined to ₹3.60 crore in FY24 from ₹21.74 crore in FY23, mainly due to lower interest income (₹1,244.26 crore vs. ₹1,303.71 crore) and higher employee expenses (₹419.25 crore vs. ₹404.43 crore). The shift to affordable housing at lower rates impacted earnings, while finance costs rose with industry trends. CARE Ratings expects credit costs to improve with a better customer profile.
- Interest rate risk and high Opex model: MRHFL faces interest rate risk due to fixed-rate lending, though its fixed-rate portfolio reduced to 50% in FY24 from 60% in FY23. Borrowing costs rose to 7.55-7.75% (Apr-May 2024), impacting NIMs. Higher opex, mainly from employee and operational costs, is expected to reduce with branch closures (769 in FY23 to 689 in FY24), supporting future profitability.
About Mahindra Rural Housing Finance Limited
Mahindra Rural Housing Finance Limited (MRHFL) is a subsidiary of Mahindra & Mahindra Financial Services Limited (MMFSL) and a part of the Mahindra Group. It is a housing finance company (HFC) focused on providing housing finance solutions to rural and semi-urban customers across India.
Board of Directors
- Mr. Jyotin Mehta - Director
- Dr. Narendra Mairpady - Director
- Ms. Smita Mankad - Director
- Mr. Vivek Karve - Director
- Mr. Ramesh Iyer - Chairman
Senior Management
- Mr. Shantanu Rege - Managing Director & CEO
- Mr. Dinesh Prajapati - CFO
- Mr. Navin Joshi - Company secretary