Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q3 FY2023 Earnings Presentation
43 slides from Mahindra & Mahindra's earnings presentation, Feb 11, 2023
Slide 1: Exchange intimation letter on analyst meet presentation
Mahindra & Mahindra Ltd. Mahindra Towers, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India Tel: +91 22 2490 1441 Fax: +91 22 2490 0833 www.mahindra.com REF:NS:SEC: 10th February, 2023 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot
Slide 2: Reigniting Value Creation
Reigniting Value Creation Analyst Meet Dr Anish Shah | 10 February 2023 1
Slide 3: Key Messages
Key Messages • Strong operating performance … Auto business momentum … Standalone: PAT (before EI)*: Q3 52%, YTD 47% • Capital allocation continues to yield results … Consolidated: PAT (after EI): Q3 35%, YTD 76% • Consistent delivery on our Commitments 2 * PAT before EI (net of taxes)
Slide 4: Standalone M&M results
Standalone M&M results Rs Cr Revenue PAT before EI* 54% YTD 21,654 41% 15,349 47% YTD 2,029 52% 1,335 Q3 F22 Q3 F23 Q3 F22 Q3 F23 Strong operating performance 3 * PAT before EI (net of taxes)
Slide 5: Consolidated M&M results
Consolidated M&M results Rs Cr PAT before EI* PAT after EI 76% YTD 48% YTD 2,677 35% 2,044 14% 1,987 1,798 Q3 F22 Q3 F23 Q3 F22 Q3 F23 Capital allocation continues to yield results 4 * PAT before EI (net of taxes)
Slide 6: Our commitments
Our commitments Target Performance ROE% Path to RoE 18% RoE 13.8% 4.4% 14.8% 20.3% 0.3% Capital Allocation F19 F20 F21 F22 F23 YTD EPS: Rs. EPS Growth 15 - 20% 48.7 16.2 58.8 68.4 EPS Growth 1.0 Operational Excellence F19 F20 F21 F22 F23 YTD • PBIT improvement in Auto by 300 bps Scale Margin ↑ YoY;
Slide 7: Q3 F23 Analyst and Investor Conference: Automotive & Farm Sectors
Q3 F23 ANALYST AND INVESTOR CONFERENCE AUTOMOTIVE & FARM SECTORS RAJESH JEJURIKAR EXECUTIVE DIRECTOR, AUTO & FARM SECTORS 10 February 2023
Slide 8: Q3 Highlights
Q3 HIGHLIGHTS mahindra
Slide 9: Q3: Auto + Farm
Q3: AUTO + FARM HIGHEST EVER REVENUE Rs. 21,074 crs 42% YoY HIGHEST EVER PBIT Rs. 2,029 crs 64% YoY 8 *Addition of published standalone segment results of Auto and Farm (excludes Powerol & 2-Wheeler businesses) Auto Segment numbers are post-merger with MEML
Slide 10: Q3: Farm
Q3: FARM HIGHEST EVER Q3 VOLUMES 104.9k 14% YoY MARKET LEADERSHIP 41.0% 160 bps YoY 9
Slide 11: Q3: Auto
Q3: AUTO HIGHEST EVER Q3 VOLUMES 176k 45% YoY #1 IN SUV REVENUE MS 20.6% 500 bps YoY 10
Slide 12: Q3: E-3W
Q3: E-3W HIGHEST EVER VOLUMES 11.8k 114% YoY CONTINUED MARKET LEADERSHIP 63.5% 11
Slide 13: Auto + Farm Financials
AUTO + FARM FINANCIALS mahindra
Slide 14: Auto + Farm Segments: Q3 Standalone
AUTO + FARM SEGMENTS: Q3 STANDALONE* Rs Cr Revenue PBIT (Before EI) 21,074 42% 64% 6,278 2,029 14,872 5,218 1,039 1,239 14,797 905 9,654 990 334 Q3 F22 Q3 F23 Q3 F22 Q3 F23 Auto Farm Auto Farm 13 *Addition of published standalone segment results of Auto and Farm (excludes Powerol & 2-Wheeler busines
Slide 15: Auto + Farm Segments: Q3 Consolidated
AUTO + FARM SEGMENTS: Q3 CONSOLIDATED* Rs Cr Revenue PBIT (Before EI) 37% 2,088 62% 23,172 8,071 1,136 16,928 1,287 6,970 940 15,101 951 9,958 347 Q3 F22 Q3 F23 Q3 F22 Q3 F23 Auto Farm Auto Farm 14 *Addition of published consolidated segment results of Auto and Farm (excludes Powerol & 2-Wheeler bus
Slide 16: Farm Equipment: Transform Farming, Enrich Lives
FARM EQUIPMENT TRANSFORM FARMING ENRICH LIVES
Slide 17: Industry set to cross 9 lacs
INDUSTRY SET TO CROSS 9 LACS Higher govt. spending in H2 4 years of Normal Monsoon Improving Terms of Trade Tractor Industry 8,99,407 8,42,266 7,09,002 F20 F21 F22 F23 F20-F23 CAGR ~9.5% 16
Slide 18: Market Leadership – 1.6% increase in Q3 F23 vs PY
MARKET LEADERSHIP – 1.6% INCREASE in Q3 F23 vs PY YTD F23 MS at 41.4% (gain of 0.9% vs PY) Q3 F23 MS at 41.0% (gain of 1.6% vs PY) 40.5% 41.0% 40.3% 39.4% 38.0% Q2 F19 Q4 F21 Q1 F19 Q3 F19 Q4 F19 Q1 F20 Q2 F20 Q3 F20 Q4 F20 Q1 F21 Q2 F21 Q3 F21 Q1 F22 Q2 F22 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 17 MS
Slide 19: Building Domestic Fortress
BUILDING DOMESTIC FORTRESS Success of Yuvo Tech+ Effective Brand Campaigns Contributing to 15%+ volumes1 Josh ka Raj & Tough Hardum Channel Dominance Strong play in 30-50 HP segment ~120 net new dealers added over PY 170 bps MS gain in Q3 F23 vs PY 18 1 of Mahindra Brand in Q3 F23
Slide 20: Farm Machinery: Scaling up for Quantum Growth
FARM MACHINERY: SCALING UP FOR QUANTUM GROWTH Global Industry 10X Revenue1 by 2027 Tractor: $60 Bn 1.7x Farm Machinery: $100 Bn 15 new products Indian Industry: F22 YTD F23 Revenue: In house manufacturing: Pithampur 40% YoY Growth Tractor: Rs 47,000 Crs Rapid channel expansion 0.2x Global expansion
Slide 21: FES Overall Margin Improvement Continues
FES OVERALL MARGIN IMPROVEMENT CONTINUES FES PBIT % 16.6% 16.4% 16.0% 15.7% Q4 F22 Q1 F23 Q2 F23 Q3 F23 20
Slide 22: Automotive Business
AUTOMOTIVE BUSINESS mi Rise mahinedra
Slide 23: Q3 Revenue Growth of 53% Driven by 45% Volume Growth
Q3 REVENUE GROWTH OF 53% DRIVEN BY 45% VOLUME GROWTH Rs Cr Domestic Volumes Standalone Revenue 90,797 53% 56,887 52,338 58,327 52,003 14,797 44,165 9,654 Q3 F21 Q4 F21 Q1 F22 Q2 F22 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 SUVs LCV <3.5T Q3 F22 Q3 F23 Auto Segment numbers are post-merger with MEML Domesti
Slide 24: Market Share Leaders
MARKET SHARE LEADERS #1 in Revenue MS for 4 consecutive quarters MS Gain of 9% YoY in LCV <3.5T M&M UV Rev MS % LCV <3.5T 20.6% 19.0% 17.9% 48.1% 46.9% 46.5% 17.1% 44.2% 15.6% 42.7% 14.6% 40.5% 14.2% 37.5% 12.6% 12.9% 34.9% 33.2% Q3 F21 Q4 F21 Q1 F22 Q2 F22 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 Q3 F21
Slide 25: Strong UV Performance & Pipeline
STRONG UV PERFORMANCE & PIPELINE Open Bookings: ~266k 23k open bookings 77k open bookings 37k open bookings 9k open bookings 119k open bookings 9.3k per month 9.9k per month 4.6k per month 10.4k per month 16.5k per month XUV3OO & SCORPIO-N (incl XUV4OO XUV7OO THAR (Incl RWD) BOLERO (incl NEO) Classi
Slide 26: Scorpio-N Raising Safety Standards
SCORPIO-N RAISING SAFETY STANDARDS 25
Slide 27: Thar: Creating a Lifestyle Brand
THAR: CREATING A LIFESTYLE BRAND Expanding reach with the launch of All New Thar RWD Most followed 4-wheeler brand on Instagram 26
Slide 28: XUV 400: Fastest Booked Electric SUV in India
XUV 400: FASTEST BOOKED ELECTRIC SUV IN INDIA 27
Slide 29: Trucks & Buses: Strong Portfolio
TRUCKS & BUSES: STRONG PORTFOLIO CV Industry to rebound after 4 years of degrowth F19: CV Industry Peak 4,26,720 3.5T – 55T | 5 Brands | 11 Platforms | 174 Variants Step improvement in Retail Volumes F24: Industry back to F19 levels Retail Volumes 1.9x 4,19,000+ 1.4x x F25 onwards: Growth expected b
Slide 30: Auto Financials
AUTO FINANCIALS mahindra
Slide 31: Profit grows ~200% over last year
PROFIT GROWS ~200% OVER LAST YEAR Rs Cr Standalone PBIT (Before EI) 196% 990 334 Q3 F22 Q3 F23 30 Auto Segment numbers are post-merger with MEML
Slide 32: 3% Margin Improvement in Mid-term Already Achieved
3% MARGIN IMPROVEMENT IN MID-TERM ALREADY ACHIEVED Standalone PBIT % 3.2% 6.7% 6.0% 5.4% 5.5% 3.5% Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 31 Auto Segment numbers are post-merger with MEML
Slide 33: Summary
SUMMARY Highest ever Revenue* Highest ever PBIT* Farm: Sequential margin improvement Auto: 320 bps margin improvement over PY Farm: 1.6% MS uptick in Q3 F23 Auto: Leadership maintained in revenue MS E-3W: Continued leadership with highest ever quarterly volumes 32 *Addition of published segment resu
Slide 34: Financials
Financials Analyst Meet Manoj Bhat | 10 February 2023
Slide 35: Financial Summary: Q3 F23
Financial Summary: Q3 F23 STANDALONE M&M Rs Cr Revenue EBITDA 54% YTD 21,654 41% 50% YTD 15,349 2,814 56% 1,803 Q3 F22 Q3 F23 Q3 F22 Q3 F23 34
Slide 36: Financial Summary: Q3 F23
Financial Summary: Q3 F23 STANDALONE M&M Rs Cr PAT before EI* PAT after EI 47% YTD 2,029 52% 39% YTD 1,335 1,528 14% 1,335 Q3 F22 Q3 F23 Q3 F22 Q3 F23 35 * PAT before EI (net of taxes)
Slide 37: Financials Summary: Q3 F23
Financials Summary: Q3 F23 CONSOLIDATED M&M Rs Cr Revenue* 38% YTD 30,620 30% 23,594 Segment Q3 F22 Q3 F23 V% Auto 9,958 15,101 52% FES 6,970 8,071 16% Group Cos. 7,297 8,316 14% Inter-segment (631) (868) Q3 F22 Q3 F23 36 * Tech Mahindra (Associate) revenue not included above
Slide 38: Financial Summary: Q3 F23
Financial Summary: Q3 F23 CONSOLIDATED M&M Rs Cr PAT before EI* PAT after EI 76% YTD 48% YTD 2,677 35% 2,044 14% 1,987 1,798 Q3 F22 Q3 F23 Q3 F22 Q3 F23 37 * PAT before EI (net of taxes)
Slide 39: TechM & MMFSL
TechM & MMFSL Rs Cr Revenue PAT Highlights 22% YTD TechM 20% 13,735 (8.5)% YTD ▪ Revenue 20% YoY … 700Mn+ TCV for 11,451 8 consecutive quarters 1,369 1,297 (5.3)% ▪ Margin improvement a key focus area Q3 F22 Q3 F23 Q3 F22 Q3 F23 Disbursements GNPA% Highlights MMFSL 14,467 11,824 ▪ PAT 30%… due t
Slide 40: Growth Gems (Listed)
Growth Gems (Listed) Rs Cr RsCr Rs Cr Logistics* Hospitality Real estate YTD YTD YTD 2.7x 15% 5.7x (21)% (1.9)x 33% PAT PAT PAT 33 1.8 1.4 14 25 (12) Q3 F22 Q3 F23 Q3 F22 Q3 F23 Q3 F22 Q3 F23 ▪ Revenue 17%, led by Auto business ▪ Robust occupancy of 85% ▪ Residential Launches of 1.11 msft ▪ Rivigo
Slide 41: PAT (After EI): Q3 F23
PAT (AFTER EI): Q3 F23 CONSOLIDATED M&M Rs Cr Q3 F22 Q3 F23 Q3 F22 to Q3 F23 Auto & Farm* 901 1,506 35% 2,677 182 38 139 TechM & MMFSL* 901 719 444 605 1,987 Growth Gems* 63 25 Investments* (66) (206) EI net of tax 189 633 PAT AFTER EI AUTO & FARM TECHM & GROWTH INVESTMENTS EI PAT AFTER EI (Q3 F22)
Slide 42: Thank you
Thank you _— 41
Slide 43: Segment results: Q3 F23
Segment results: Q3 F23 Rs Cr Rs Cr Revenue PBIT RsCr Cr Rs Q3 F22 Q3 F23 Q3 F22 Q3 F23 Automotive 9,958 15,101 347 951 Farm equipment 6,970 8,071 940 1,136 Financial services 2,926 3,284 1,311 883 Hospitality 563 602 29 8 Real estate 26 188 (43) (14) Others 3,782 4,242 42 82
Mahindra & Mahindra — Q3 FY2023 Earnings Presentation on 6ix