Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q4 FY2016 Earnings Presentation
36 slides from Mahindra & Mahindra's earnings presentation, May 30, 2016
Slide 1: ‘Manthan’ redux?
V S Parthasarathy Group CFO Mahindra & Mahindra ‘Manthan’ redux? 1 May 30, 2016
Slide 2: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar? 2
Slide 3: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar? 3
Slide 4: Churning all around - Faltering global growth
Churning all around - Faltering global growth US has seen some growth European economies are still struggling Record low commodity and oil prices Saving is… to repay debt 1st rate hike by Fed since’06 The Bloomberg Commodity Negative int. index rate at Euro dropped to lowest in 12 yrs Divergent Inte
Slide 5: Churning all around - Faltering global growth
Churning all around - Faltering global growth ‘India’ is the star -yet to shine Migration issue but it is appreciating as safe haven currency Japan wants currency to depreciate
Slide 6: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar?
Slide 7: India in churn of its own
India in churn of its own
Slide 8: India in churn of its own
India in churn of its own Government with good agenda, but lacks numbers Excellent macro-economic conditions; but, weak demand & investment growth Favourable oil / commodity prices, falling interest rate, but poor exports Long term directional growth of auto is bullish; however, short-term challenge
Slide 9: India in churn of its own
India in churn of its own Govt. focusing on long term measures Experiencing short term pains Over- Lower MSP Ballooning of GST, Land bill ‘Bharat’ still leveraged increase NPAs stuck struggling Balance Sheet
Slide 10: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar? 10
Slide 11: M&M, a microcosm of India… ‘Manthan @ Mahindra’
M&M, a microcosm of India… ‘Manthan @ Mahindra’ Pressure on Tough year for M&M businesses Volumes In difficult times, tough get tougher.. Revenue Margins 14 new launches in Auto and 2 Two successive monsoon failure new Launches in FES New launches helped improve Moderate increase in MSP Demonstratin
Slide 12: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar? 12
Slide 13: Financials Snapshot
FINANCIALS SNAPSHOT
Slide 14: Quarterly Performance
Rs Crs Quarterly PERFORMANCE M&M + MVML SNAPSHOT Q4 FY 16 Q4 FY 15 Volume – FES 43,415 nos. 38,761 nos. 12.0% Volume - Auto 1,40,509 nos. 1,23,169 nos. 14.1% Net Sales & Operating Inc. 10,160 9,000 12.9% EBIDTA 1,269 1,004 26.4% PBT Before EI 931 740 25.8% PAT Before EI 662 550 20.4% OPM 12.5% 11.2%
Slide 15: Segment Revenue & Result – Q4
SEGMENT REVENUE & RESULT – Q4 AS FES SEGMENT REVENUE SEGMENT REVENUE Q4 F 16 7451 Q4 F 16 2743 Q4 F 15 6515 Q4 F 15 2519 % Inc/ (Dec) 14.4% % Inc/ (Dec) 8.9% SEGMENT RESULT SEGMENT RESULT Q4 F 16 713 Q4 F 16 353 Q4 F 15 583 Q4 F 15 283 % Inc/ (Dec) 22.3% % Inc/ (Dec) 24.7%
Slide 16: Yearly Performance
Rs Crs Yearly PERFORMANCE M&M + MVML SNAPSHOT FY 16 FY 15 Volume – FES 2,14,173 nos. 2,34,766 nos. 8.8% Volume - Auto 4,94,096 nos. 4,64,850 nos. 6.3% Net Sales & Operating Inc. 38,857 36,968 5.1% EBIDTA 5,199 4,603 12.9% PBT Before EI 4,508 4,021 12.1% PAT Before EI 3,292 3,088 6.6% OPM 13.4% 12.5%
Slide 17: Performance Indicators
Performance Indicators Particulars F – 2016 F – 2015 OPM (%) 13.4 12.5 ROCE 17.4 17.4 Interest Coverage Ratio 18.8 14.0 EPS (Basic) (Rs.)* 56 52 * PAT before EI 17
Slide 18: Growth at ‘Churning’ stage
Growth at ‘Churning’ stage M&M + MVML (Standalone) Net Revenue EBIDTA CAGR 0.7% CAGR -1.3%% 45000 6000 38857 5329 5248 5197 40000 38357 38817 36968 5000 4603 35000 31370 4150 CAGR 26% CAGR 27% 30000 4000 3621 25000 23564 2965 3000 20000 18604 15000 13094 2000 11541 10026 1257 1367 1093 10000 1000 50
Slide 19: Robust Financial Risk Profile
Robust Financial Risk Profile DE Ratio M&M + MVML Gearing Multiple M&M + MVML Lower the better Lower the better 1.2 0.77 Net Gross 3.00 2.79 1 2.50 0.6 0.8 2.00 1.66 0.45 0.6 0.32 0.37 1.50 0.46 0.3 1.06 1.06 0.98 0.4 0.27 0.31 0.28 1.00 0.82 0.76 0.83 0.82 0.65 0.22 0.19 0.17 0.17 0.2 0.09 0.09 0.5
Slide 20: F-2016 Consolidated Result
F-2016 Consolidated Result
Slide 21: Financial Highlights
Financial Highlights M&M Consolidated – FY 16 Vs FY 15 Total income EBIDTA PAT before EI Rs. 83,207 crs Rs. 6,777 crs Rs. 3,206 crs 10% 10% 12% Rs. 75,514 crs Rs. 6,150 crs Rs. 2,863 crs
Slide 22: Consolidated Segment Report
Consolidated Segment Report
Slide 23: Segment Revenue
Segment Revenue Real Estate Aerospace & Steel Others Segment Revenue 1200 1200 6000 1110 1022 4920 1000 1000 5000 835 812 3914 800 800 4000 -25% -21% 600 600 3000 +26% 400 400 2000 200 200 1000 0 0 0 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Segment Result 500 -105 0 448 450 -100 400 -110 FY 15 FY 16 -200
Slide 24: Segment Revenue
Segment Revenue Steel trading Farm Equipment Financial Services Segment Revenue 1340 17500 6700 1320 17212 6594 6600 1320 17000 6500 1300 6400 16500 6300 1280 -5% +9% 6200 +9% 1260 1253 6053 16000 15789 6100 1240 6000 15500 5900 1220 5800 1200 15000 5700 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Segment R
Slide 25: Segment Revenue
Segment Revenue Automotive Hospitality IT Services Segment Revenue 47000 1800 500 46298 1599 434 1600 450 46000 1400 400 353 45000 1200 350 +8% 1000 812 +97% 300 +23% 44000 250 800 42995 200 43000 600 150 400 100 42000 200 50 41000 0 0 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 Segment Result 2500 250 70 2
Slide 26: Listed companies performance - PAT
Listed companies performance -PAT TML MMFSL MLDL MHRIL* PAT before EI PAT Q4 Q4 Q4 Q4 16 Rs 897 crs 16 Rs 411 crs 16 Rs 49 crs 16 Rs 32 crs Q4 Q4 Q4 Q4 15 Rs 472 crs 15 Rs 367 crs 15 Rs 31 crs 15 Rs 10 crs FY FY FY FY 16 Rs 3,118 crs 16 Rs.772 crs 16 Rs. 93 crs 16 Rs. 117 crs * MHRIL results are on
Slide 27: Value Creation
Value Creation Group Market Cap (Rs Cr) Value Creation F-2016 Market Cap (31st Mar16) 154510 Rs Crs Mahindra & Mahindra 75,196 Tech Mahindra 45,966 MMFSL 13,881 Ssangyong 6,564 Mahindra Holidays 3,432 Mahindra Lifespaces 1,729 Swaraj Engines 1,064 1434 6583 Mahindra CIE 6,343 F1995 F2005 F2016 EPC I
Slide 28: Result speaks
Result speaks Returns in No. of times & CAGR % As at 31st March 2016 LAST 25 YEARS Last 15 years Last 5 years M&M 116.9 21% 40.3 28% 1.7 12% Sensex 21.0 13% 7.0 14% 1.3 5% Gold $/Oz 3.5 5% 3.5 5% 0.9 -3 % Gold $/Oz Sensex M&M
Slide 29: Awards and recognition
Mahindra received the Best Risk Management award from ICICI Lombard & CNBC TV18 M&M won the Business Today “Best Companies to Work For” award in 2016 Keshub Mahindra was honoured with the Lifetime Achievement Award from ASSOCHAM Golden peacock award for Excellence in Corporate Governance M&M: 2015 &
Slide 30: Awards and recognition
MWCJ becomes first project in Asia to reach C40 Stage 2 MMFSL is among the best in the prestigious Dun & Bradstreet’s India’s Top 500 Companies 2014 Mahindra received ICSI award for Best Governed Company in 2015 Mahindra in top 2 in Finance Asia poll in the ‘Investor Relations' category in India Tec
Slide 31: Debut International Rating at par with India; Digitisation @ Mahindra
MVML domestic rating Debut International MLDL domestic rating AAA rating upgraded by two notches from upgraded to AAA reconfirmed Rating at par with India A+ to AA Digitisation @ Mahindra String of Pearls - PMTC, MAM & Pininfarina
Slide 32: This has been the most exciting year of New launches for us
This has been the most exciting year of New launches for us New Age XUV XUV 500 AT New Thar CRDe TUV300 500 Imperio KUV100 Swaraj 960 NuPro and Soboro Jeeto Minitruck Supro Minivan Supro Maxitruck
Slide 33: Churn all around, Cascading to India, Mahindra in this churn
Churn all Cascading Mahindra in Performance Churn…… around to India this churn – Q4 & F16 Nectar?
Slide 34: Future….headwinds & tailwinds
Future….headwinds & tailwinds Complete product portfolio – Global trade improving – FES & Auto at Mahindra early signs of recovery Macro-economic scenario Challenges: No Fiscal positive with Govt. actions benefits, Higher Tax Rate 7th pay commission & New launches could OROP to improve auto suppress
Slide 35: ‘AMRIT’ from this Maha-Sagar Manthan?
‘AMRIT’ FROM THIS MAHA-SAGAR MANTHAN? 35
Slide 36: Thank You
THANK YOU
Mahindra & Mahindra — Q4 FY2016 Earnings Presentation on 6ix