Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q1 F23 Earnings Presentation
41 slides from Mahindra & Mahindra's earnings presentation, Aug 5, 2022
Slide 1: Exchange filing cover letter for press/analyst meet presentation
Mahindra & Mahindra Ltd. Mahindra Towers, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India Tel: +91 22 24901441 Fax: +91 22 24975081 REF:NS:SEC: 5th August,2022 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block Dalal
Slide 2: Reigniting Value Creation – Press Meet
Reigniting Value Creation Press Meet Dr Anish Shah | 5 August 2022 1
Slide 3: Key Messages
KEY MESSAGES • Standalone … Revenue 67%; Robust volumes in Farm and Auto • Standalone PBIT%* … Q1 ↓ 120 bps; Farm ↓ 430 bps, Auto 400 bps • Standalone PAT after EI … Q1 67%; operating leverage & cost control • Consolidated PAT after EI … Q1 5.2x; excl MMFSL 1.7x * Before EI 2
Slide 4: Financial Summary: Q1 F23 – Standalone M&M
FINANCIAL SUMMARY: Q1 F23 STANDALONE M&M Rs Cr Revenue PAT after EI 19,613 67% 1,430 67% 11,765 857 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Strong growth in Auto and Farm … volume and profits 3
Slide 5: Financial Summary: Q1 F23 – Consolidated M&M
FINANCIAL SUMMARY: Q1 F23 CONSOLIDATED M&M Rs Cr PAT after EI PAT after EI (incl. MMFSL) (excl. MMFSL) 2,196 5.2x 2,071 1.7x 1,251 424 424 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Robust performance across group companies 4
Slide 6: Q1 F23: In a Snapshot
Q1 F23: IN A SNAPSHOT CONSOLIDATED M&M PAT Rs Cr CORE CORE GROWTH GEMS INVESTMENTS Auto and Farm TechM and MMFSL Listed & unlisted Incl. Forex, others 56% 445 ++ ++ 184 ++ 1,433 132 921 163* (437) 8 (19) 21 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Auto: Volumes, new model TechM: Conti
Slide 7: Q1 F23 Press Meet – Automotive & Farm Sectors
Q1 F23 Press Meet Automotive & Farm Sectors RAJESH JEJURIKAR 5th August 2022 Executive Director, Auto & Farm Sectors 6
Slide 8: Highlights – Q1 F23
HIGHLIGHTS – Q1 F23 Farm Auto Market Share Gain #1 in SUV Revenue Market Share Q1 F23 MS at 42.7% (gain of 0.9%) Q1 F23 SUV Rev MS at 17.1% Highest ever Dom. volumes Highest ever SUV & Pik-up Volumes Vol : 112.3k (18% YoY growth) ▪ SUV: 75.4K (77.2% YoY growth) ▪ Pik-up: 46.4k (79.7% YoY growth) Hig
Slide 9: Auto + Farm Segments: Revenue Q1 F23
AUTO + FARM SEGMENTS: REVENUE Q1 F23 Rs Cr Standalone Revenue Consolidated Revenue 67% 57% 18,995 * 21,169 11,369 13,506 Q1 F22 Q1 F23 Q1 F22 Q1 F23 * Highest ever quarterly revenue *Addition of published standalone & consolidated segment results of Auto and Farm (excludes SYMC, Powerol & 2-Wheeler
Slide 10: Auto + Farm Segments: PBIT Q1 F23
AUTO + FARM SEGMENTS: PBIT Q1 F23 Rs Cr PBIT (Before EI) – Standalone* PBIT (Before EI) – Consolidated* 50% 43% 1,777 1,815 1,184 1,268 1,074 * 1,144 1,081 1,188 704 670 103 81 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Auto Farm Auto Farm * 2nd Highest Q1 PBIT *Addition of published standalone & consolidated segm
Slide 11: Farm Equipment
FARM EQUIPMENT TRANSFORM FARMING ENRICH LIVES 10
Slide 12: Farm Segment: Sequential Performance
FARM SEGMENT: SEQUENTIAL PERFORMANCE Rs Cr Standalone Revenue Standalone PBIT & PBIT% 16.0% 55% 58% 15.7% 6,689 1,074 4,327 678 Q4 F22 Q1 F23 Q4 F22 Q1 F23 11
Slide 13: Monsoon & Sowing Progress
MONSOON & SOWING PROGRESS Excess rains in west and south but deficient in UP, Cumulative Rainfall above normal (as on 30th July) Bihar, Jharkhand, West Bengal Rainfall distribution As on 30h July Rainfall (mm) 8% 473 437 Normal Actual Acreage close to PY level 74% of normal area sown (as on 29th Jul
Slide 14: Healthy Water Storage Levels
HEALTHY WATER STORAGE LEVELS Reservoir level at 57% of the live capacity; higher than average by 39% 70 60 50 40 30 20 10 0 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W5 W1 W2 W3 W4 Apr May Jun Jul Reservoir Levels: As % of live storage at FRL % deviation from LPA Source: Ministry of Agriculture 13
Slide 15: Key Levers – F23
KEY LEVERS – F23 Build a Fortress in Domestic Business Aggressive Growth in Farm Machinery Global Expansion Reinvent Costs 14
Slide 16: Building Domestic Fortress
BUILDING DOMESTIC FORTRESS Brands well positioned Market Share gain: 0.9% New products Launch of Yuvo Tech+ Ph 2 accepted well in market Channel Dominance Highest no. of tractor dealers in India 15
Slide 17: Global Performance
GLOBAL PERFORMANCE Consistently growing export performance 8 quarters of +ve PBIT for FES subsidiaries Export Volume PBIT Rs Crs 107 105 65 71 5,120* 3 1 29 34 4,722 4,686 4,042 4,065 -69 3,276 3,320 2,899 8 Consecutive +ve Qtrs -650 1,055 -884 F19 F20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 F21 Q2 F21 Q3 F21
Slide 18: FES Global Businesses Q1 – From Consolidation to Growth
FES GLOBAL BUSINESSES Q1 – FROM CONSOLIDATION TO GROWTH MAgNA Sampo MS 5.8% [<110HP] Continued Positive PBT MAM Continued Positive PBT Turkey despite supply constraints Erkunt Traktor : MS 7.1% : Highest Quarterly PBT* Erkunt Foundry : Highest Q1 PBT* South Africa Operations started in Q4F22 with Br
Slide 19: Automotive Business
AUTOMOTIVE BUSINESS 18
Slide 20: Key Levers – F23
KEY LEVERS – F23 Maintain Strong Brand Value Develop Platform and EV Strategy Transform Customer Experience De-risk Supply Chain Optimize Costs 19
Slide 21: Strong UV Portfolio
STRONG UV PORTFOLIO Strong Demand and Booking Pipeline: 140k+ Open Bookings (excl Scorpio-N) 13k open bookings 79k open bookings 25k open bookings 15k open bookings 7k open bookings 6.2k per month 10.3k per month 5k per month 8.4k per month 4.4k per month XUV300 XUV700 THAR BOLERO (incl NEO) SCORPIO
Slide 22: Scorpio-N: Launch Video
SCORPIO-N: LAUNCH VIDEO 21 21
Slide 23: Scorpio-N: Blockbuster Launch
SCORPIO-N: BLOCKBUSTER LAUNCH 22
Slide 24: Scorpio-N: Achieving New Horizons
SCORPIO-N: ACHIEVING NEW HORIZONS Increase in Digital penetration Online Booking % 26% 13% 5% Thar XUV 700 Scorpio-N 72% of the first 25k Scorpio-N booked online Shift in customer segments / geography for Scorpio-N Shift in geographies Shift in rural / urban mix 40% 37% 39% 28% 16% 17% 21% Rural 23%
Slide 25: Towards an Electrifying Future
TOWARDS AN ELECTRIFYING FUTURE OUR RIGHT TO WIN MORE ON 15TH AUG, OXFORDSHIRE, UK 24
Slide 26: BEV Teaser
BEV TEASER 1 25 25
Slide 27: BEV Teaser
BEV TEASER 2 26 26
Slide 28: Financials – Press Meet
Financials Press Meet Manoj Bhat | 5 August 2022 27
Slide 29: Financial Summary: Q1 F23 – Standalone M&M
FINANCIAL SUMMARY: Q1 F23 STANDALONE M&M Rs Rs Cr Cr Revenue EBITDA PAT after EI 19,613 67% 11,765 43% 2,341 1,631 1,430 67% 857 Q1 F22 Q1 F23 Q1 F22 Q1 F23 Q1 F22 Q1 F23 28
Slide 30: Financial Summary: Q1 F23 – Consolidated M&M
FINANCIAL SUMMARY: Q1 F23 CONSOLIDATED M&M Rs Cr Revenue -1) 28,412 48% 19,172 Segment Q1 F22 Q1 F23 V% Auto 6,317 12,741 102% FES 7,189 8,428 17% Group Cos. 6,277 7,994 27% Inter-segment (611) (750) Q1 F22 Q1 F23 (1-Tech Mahindra (Associate) revenue not included above 29
Slide 31: Financial Summary: Q1 F23 – Consolidated PAT
FINANCIAL SUMMARY: Q1 F23 CONSOLIDATED M&M Rs Cr PAT after EI PAT after EI (incl. MMFSL) (excl. MMFSL) 2,196 5.2x 2,071 1.7x 1,251 MMFSL 424 424 Q1 F22 Q1 F23 Q1 F22 Q1 F23 30
Slide 32: MMFSL Provisions: F22
MMFSL PROVISIONS: F22 CONSOLIDATED M&M Rs Cr Provisions* Highlights 763 746 1,151 ▪ Provisions leading to a negative PAT in Q1 F22 ▪ Provisions reversal leading Q2 – Q4 F22 … COVID (2,517) recovery, CE improvement ▪ Resulting in higher PAT in Q2 – Q4 F22 Q1 F22 Q2 F22 Q3 F22 Q4 F22 MMFSL provision i
Slide 33: Farm Performance
FARM PERFORMANCE CONSOLIDATED M&M Rs Cr Revenue PBIT Highlights 8,428 17% 7,189 1,188 1,144 (4)% ▪ Highest ever domestic & export volume ▪ Market share 90 bps @ 42.7%* ▪ Commodity prices lag impact on margins Q1 F22 Q1 F23 Q1 F22 Q1 F23 Growth driven by market share & demand recovery * Market sh
Slide 34: Auto Performance
AUTO PERFORMANCE CONSOLIDATED M&M Rs Cr Revenue PBIT Highlights 12,741 102% ▪ Volume @ 1.5L … PV and Pik-up 670 8.3x ▪ SUV Rev. market share @17.1% 6,317 290 bps YoY ▪ Scorpio-N launch 81 ▪ BII investment in EV Co announced Q1 F22 Q1 F23 Q1 F22 Q1 F23 Blockbuster launches driving volume and profit
Slide 35: TechM Performance
TECHM PERFORMANCE Rs Cr Profit after Tax Highlights 1,353 1,132 (16)% ▪ Strong deal momentum … TCV of $800M+ ▪ Continued margin pressure due to supply side headwinds ▪ Attrition QoQ, offshoring on rise Q1 F22 Q1 F23 Operational excellence to drive margin expansion and cash conversion 34
Slide 36: MMFSL Performance
MMFSL PERFORMANCE Standalone MMFSL Rs Cr Disbursements GNPA% Profit after Tax 9,202 9,472 223 601 15.5% (1,529) 3,872 7.7% 8.0% Q1 F22 Q4 F22 Q1 F23 Q1 F22 Q4 F22 Q1 F23 Q1 F22 Q4 F22 Q1 F23 Asset quality focus continues … Disbursements on rise 35
Slide 37: Growth Gems (Listed)
GROWTH GEMS (LISTED) Rs Cr Logistics* Hospitality Real estate 30 ++ 75 ++ 14 ++ (21) PAT PAT PAT 3 (14) Q1 F22 Q1 F23 Q1 F22 Q1 F23 Q1 F22 Q1 F23 ▪ Revenue growth 36% driven by ▪ High occupancy ~90% driving resort ▪ IC business delivers again … Jaipur, Auto and Farm income and memberships Chennai
Slide 38: PAT (After EI): Q1 F23
PAT (AFTER EI): Q1 F23 CONSOLIDATED M&M Rs Cr Q1 F22 Q1 F23 Q1 F22 to Q1 F23 5.2x Auto & Farm* 921 1,433 50 2,196 204 124 TechM & MMFSL* (437) 445 882 Growth Gems* 8 132 Investments* (19) 184# 512 424 EI (49) 1 PAT AFTER EI AUTO & FARM TECHM & GROWTH INVESTMENTS EI PAT AFTER EI (Q1 F22) MMFSL GEMS (
Slide 39: Thank You
Mahindra Rise.
Slide 40: Appendix
Appendix 39
Slide 41: Segment Results: Q1 F23
SEGMENT RESULTS: Q1 F23 Rs Cr Revenue PBIT Q1 F22 Q1 F23 Q1 F22 Q1 F23 Automotive 6,317 12,741 81 670 Farm equipment 7,189 8,428 1,188 1,144 Financial services 2,530 2,877 (2,185) 296 Hospitality 394 613 (16) 48 Real estate 150 95 (24) (34) Others 3,204 4,409 157 304 Less: In