Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q4 FY2024 Earnings Presentation
49 slides from Mahindra & Mahindra's earnings presentation, May 16, 2024
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: 16th May, 2024 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.
Slide 2: Bold by Design - Analyst Meet
Bold by Design Analyst Meet Dr Anish Shah | 16 May 2024
Slide 3: Key Messages
Key Messages • Delivered strong performance F24 Standalone PAT … 48%* F24 Consolidated PAT … 25%# • Despite challenges Stress in rural … farm industry 7% Tech M … PAT 52% • Living our purpose Sustainability … EP100 achieved in Auto, >100% water positive group Women empowerment … creating ski
Slide 4: F24: Financial Performance
F24: Financial Performance Profit after Tax Rs cr. Standalone* Consolidated^ 48% 11,269 25% 10,718 SEL and Susten gains, 1,257 7,237 Trucks impairment Trucks 688 impairment 9,025 F23 F24 F23 F24 3 * Standalone PAT includes “M&M profits” plus “dividends from all listed & unlisted subsidiaries / assoc
Slide 5: Consolidated PAT: Key Drivers
Consolidated PAT: Key Drivers Rs cr. Rs cr. Auto and Farm TechM and MMFSL Growth Gems Capitalize on market leadership Unlock full potential 5X challenge 8,287 54%^ (52)% (11)% 528 6%~ 498~ 1,356 5,395^ 1,123 1,004 647 F23 F24 F23 F24 F23 F24 F23 F24 TechM MMFSL ▪ Market share gains, volume growth ▪
Slide 6: Capitalize on market leadership
Capitalize on market leadership Rs cr. Auto Farm ▪ No 1 SUV player … revenue 36% ▪ Resilient performance amidst industry decline ▪ LCV share gains … 350 bps in <3.5T ▪ Successful global launch … OJA ▪ Strong margin performance … 190 bps*# ▪ Strong cash generation … 22% vs PY^ F24 VPY F24 VPY
Slide 7: Unlock full potential
Unlock full potential MMFSL Tech Mahindra ▪ AUM crosses 100K cr. milestone ▪ Turnaround initiated … 2-3 year journey ▪ All time low GS3 … credit costs per guidance ▪ Demand cycle continues to be muted ▪ Tougher interest rate environment ▪ Operational rigor in focus F24 VPY F24 VPY GS3% 3.4% 110 bps
Slide 8: Listed Growth Gems
Listed Growth Gems Rs cr. Logistics Hospitality Real estate ▪ Growth in 3PL, Mobility ▪ Robust occupancy of 85% ▪ Highest ever residential sales ▪ B2B Express … service levels ; ▪ Member additions 15% … ▪ Launch of 8 new residential focus on volume, efficiencies upgrades 16% projects ▪ PAT vari
Slide 9: F24: Cash Flow
F24: Cash Flow STANDALONE M&M + MEAL + LMM Co Rs cr. Auto Farm Services Total Rs Rscr. cr. Opening Balance 15,238 + Operating cash (incl. monetization, dividend) 8,279 4,147 2,549 14,975 - Capex (3,903) (1,026) (4,929) - EV: MEAL + LMM Co net# (3,001) (3,001) : PE funds raised 1,600 1,600 - Investme
Slide 10: F22 - F24: Net cash generation
F22 - F24: Net cash generation STANDALONE M&M + MEAL + LMM Co Rs cr. Auto Farm Services Total Operating cash (incl. monetization, dividend) 20,136 9,623 7,501 37,261 Deployment (13,725) (3,247) (585) (17,558) Capex (9,101) (2,632) (11,733) EV: MEAL + LMM Co net& (4,042) (4,042) : PE funds raised 2,0
Slide 11: F25 - F27: Cash deployment
F25 - F27: Cash deployment STANDALONE M&M + MEAL + LMM Co Rs cr. Auto Farm Services Total Deployment (27,000) (5,000) (5,000) (37,000) Capex – ICE (14,000) (14,000) EV – MEAL net (12,000) (12,000) Capex – Farm (5,000) (5,000) Investments (1,000) (5,000) (6,000) (Excl cell localization) (MMFSL, Growt
Slide 12: Consistent delivery on commitments
Consistent delivery on commitments Rs cr. RoE (%) EPS (Rs) 2.2$ 11.2$ 17.7 18.4 100.7 14.8 13.8 80.7 58.8 48.7 0.3 4.4 1.0 16.2 F19 F20 F21^ F22 F23 F24 F19 F20 F21^ F22 F23 F24 11 ^ Considering continuing & discontinued operations $ Represents gains on SEL and Susten net of Trucks impairment
Slide 13: Q4 F24 Analyst and Investor Conference: Automotive & Farm Sectors
Q4 F24 ANALYST AND INVESTOR CONFERENCE AUTOMOTIVE & FARM SECTORS RAJESH JEJURIKAR EXECUTIVE DIRECTOR & CEO, AUTO & FARM SECTORS 16th May 2024
Slide 14: Automotive Business: Explore the Impossible
AUTOMOTIVE BUSINESS EXPLORE THE IMPOSSIBLE
Slide 15: Auto Highlights
AUTO HIGHLIGHTS Q4 F24 VOLUMES*: 215k VOLUMES*: 825k 14% YoY 18% YoY SUV REVENUE MS 20.4% SUV REVENUE MS 20.4% 80 bps YoY 130 bps YoY #1 in SUV Revenue MS #1 in SUV Revenue MS 14 *Numbers include sales made by MLMML
Slide 16: Market Leadership in SUV
MARKET LEADERSHIP IN SUV VOLUMES (‘000s) REVENUE MARKET SHARE 459.9 20.4% 357.0 19.1% 17.6% 15.4% 223.7 13.6% 179.4 155.5 F20 F21 F22 F23 F24 F20 F21 F22 F23 F24 #2 in Volume MS for F24 #1 in Revenue MS for F23 & F24 15
Slide 17: UV Performance & Pipeline
UV PERFORMANCE & PIPELINE Open Bookings: ~220k* 50k open bookings 59k open bookings 16k open bookings 10k open bookings 86k open bookings ~7k per month ~8k per month ~9.5k per month ~17k per month THAR BOLERO SCORPIO-N XUV 3XO XUV7OO (Incl RWD) (incl NEO) (incl Classic) ~48k new bookings p.m. ~42k b
Slide 18: XUV 3XO
XUV 3XO OPPORTUNITY TO BE # 1/ # 2 IN 3 YEARS 17
Slide 19: XUV 3XO: Right to Win
XUV 3XO: RIGHT TO WIN Great Pricing for a Great Product STANDOUT DESIGN SUV COMMAND SEATING SAFE COCOON 6 PILLARS DRIVE OF YOUR LIFE RIDE OF YOUR LIFE SPACE WHERE IT COUNTS & SCI – FI TECHNOLOGY 18
Slide 20: 50,000 bookings in 60 minutes
Slide 21: XUV 3XO AV
XUV 3XO AV 20
Slide 22: #1 in LCV <3.5T
#1 IN LCV <3.5T F24 MS 49.0%, gain of 3.5% YoY LCV <3.5T Volumes (‘000s) LCV <3.5T MS 238.5 249.7 49.0% 187.9 45.7% 45.5% 170.7 151.9 41.5% 40.3% F20 F21 F22 F23 F24 F20 F21 F22 F23 F24 In F24 numbers Bolero Max Pickup 2T variant has been classified under LCV 2-3.5T. In SIAM it is classified under L
Slide 23: Last Mile Mobility
LAST MILE MOBILITY Crossed 100,000 sales, first time ever in F24 4X growth in E-3W in 2 years with 58.7%3 MS for F24 Sales Volume1 ▪ In F24 , our EV 3W portfolio grew by 51% over F23 1,00,846 83,645 ▪ L52 electrification is at 11.3% in F243 34,821 40,058 ▪ Strong focus in product upgrades with bette
Slide 24: Auto Conso Financials
AUTO CONSO FINANCIALS Rs cr. Revenue 22% PBIT 238% 1,862 Q4 F24 20,908 17,104 551 Q4 F23 Q4 F24 Q4 F23 Q4 F24 24% 108%* 2,908* F24 76,156 6,057 61,546 2,011 F23 F24 F23 F24 23 *F23 PBIT before MTBD Impairment of Rs 897 cr. PBIT is net of intercompany eliminations, stock reserve and after share of pr
Slide 25: Auto Margin Improvement Continues
AUTO MARGIN IMPROVEMENT CONTINUES Auto Standalone PBIT% 1.7% 3.8% 8.8% 7.1% 3.3% Q3 F22 Q4 F23 Q4 F24 Against 3% medium term margin improvement committed in Q3 F22, we have achieved margin improvement of 5.5% 24 Auto Standalone Segment includes Spares business and manufacturing of Two-Wheelers
Slide 26: Auto 2025 Commitments: Updates
AUTO 2025 COMMITMENTS1: UPDATES Revenue Growth Achieved 3-year CAGR of 43.1% in F24 Leadership in SUV segment #1 in SUV Revenue MS in F23 and F24 New MaXX Pikup portfolio launched, Leadership in LCV<3.5T 49.0% MS in LCV<3.5T (7.5% gain vs F21) Pioneering E-SUVs BEV planned for launch starting Q4 F25
Slide 27: What Next?
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Slide 28: Auto: Product Portfolio
AUTO: PRODUCT PORTFOLIO 9 7 7 * # ICE SUVs BEVs LCVs COMING YOUR WAY BY 2030! 27 *3 Mid cycle enhancements including recently launched XUV3XO & 6 new SUVs # 5 ICE & 2 EVs in LCV < 3.5T
Slide 29: Auto: Capacity Planning
AUTO: CAPACITY PLANNING F20 Exit F23 Exit F24 Exit F25 Exit F26 Exit Per Month Capacity Capacity Capacity Capacity Capacity Capacity Overall SUVs Capacity 19K 39k 49k 64k 72k ▪ F25 Exit capacity includes: - Increase in SUV capacity (THAR 5D, XUV3XO/4OO) : 5K - EV capacity : 10K ▪ Additional 8k EV ca
Slide 30: Auto: Investment Plan for F25 – F27 Cycle
AUTO: INVESTMENT PLAN FOR F25 – F27 CYCLE Rs cr. AUTO F25-F27 SUV ICE 8,500 CV (incl. EV & MTBD) 4,000 Sustenance 1,500 Auto Total 14,000 Investment in MEAL 12,000 Investments for New Products & Capacity 26,000 (Auto + MEAL) Investment in other Subs 1,000 Total Auto investment plan 27,000 29
Slide 31: Farm Equipment: Transform Farming, Enrich Lives
FARM EQUIPMENT TRANSFORM FARMING, ENRICH LIVES
Slide 32: Farm Highlights
FARM HIGHLIGHTS Q4 F24 VOLUMES: 71k VOLUMES: 375k 20% YoY 7.2% YoY MARKET SHARE 39.4% MARKET SHARE 41.6% 130 bps YoY 40 bps YoY 31
Slide 33: Building Domestic Fortress
BUILDING DOMESTIC FORTRESS FES MS Successful Launches 41.6% 41.2% 41.2% OJA, Target & Naya Swaraj 40.0% 38.2% 20-30 HP Market Share Gain of 12.8%* MS on account of OJA & Target F20 F21 F22 F23 F24 32 *From Sep’23 to Mar’24 YoY
Slide 34: Farm Machinery – Scaling Up for Quantum Growth
FARM MACHINERY – SCALING UP FOR QUANTUM GROWTH FM Revenue (Rs cr.)* 866 32% 654 36% 481 F22 F23 F24 ▪ Revenue: Q4 F24 Rs 225 cr. (44% YoY Growth); F24 Rs 866 cr. (32% YoY Growth) ▪ Export Growth: Product launch in North America market: Rotary tillers, Loaders & Backhoes ▪ Rotavators: #2 with 20.3% M
Slide 35: Farm Conso Financials
FARM CONSO FINANCIALS Rs cr. Revenue PBIT -22% -17% 8,666 Q4 6,790 914 757 Q4 F23 Q4 F24 Q4 F23 Q4 F24 34,870 -2%* 5,028 -3%* F24 34,306* 33,474 4,464* 4,327 F23 F24 F23 F24 Nos are after hyper inflation accounting for Turkey companies 34 *Revenue & PBIT before SEL investment reval. gains of Rs 564
Slide 36: Farm Margins
FARM MARGINS Farm Standalone PBIT % Core Tractors* PBIT % # 17.7% 17.4% # 16.2% 16.2% F23 F24 F23 F24 #0.2% one-time impact of World Cup sponsorship in F24 Farm Standalone segment includes Powerol Business 35 *Core Tractor comprises of Tractor business (incl exports) and excludes Powerol & Farm Mach
Slide 37: Stability in Volatility
STABILITY IN VOLATILITY Industry Growth % Core Tractor PBIT % 26.9% 23.4% 19.7% 19.0% 18.6% 16.9% 17.5% 17.3% 17.9% 17.5% 16.9% * 17.6% 15.8% 18.7% 10.5% 4.8% -5.6% -4.9% -1.9% -6.4% -9.9% -18.9% F20 F21 F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 36 * 0.7% one-time impact of World Cup spons
Slide 38: Farm 2025 Commitments: Updates
FARM 2025 COMMITMENTS1: UPDATES Revenue Growth Achieved 3-year CAGR of 10.5% in F24 Successful launch of OJA, Target & Naya Swaraj; Grow Market share in Tractors 3.4% MS gain in last 3 years Quantum growth in FM Achieved 2-year CAGR of 34% in F24 OJA US launch, SEA Regional office started, Significa
Slide 39: What Next?
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Slide 40: Positive Developments in Tractor Industry for F25
POSITIVE DEVELOPMENTS IN TRACTOR INDUSTRY FOR F25 ▪ IMD expects monsoon to be ‘Above Normal’ at 106% of LPA ▪ Farm output expected to recover, agri export likely to see robust growth ▪ Govt focus on infra development, agri and rural spending with agri credit availability ▪ Positive benefit of Navrat
Slide 41: Farm: Investment Plan to Bring Exciting New Products
FARM: INVESTMENT PLAN TO BRING EXCITING NEW PRODUCTS Rs cr. FARM F25-F27 New Product 2,800 Capacity 700 Regulatory & Sustenance* 1,500 Total Farm investment plan 5,000 *Includes ~Rs 600 cr. investment for Trem V required only in case regulation becomes mandatory 40
Slide 42: Summary
SUMMARY Auto Farm ▪ F24 Revenue: Rs 76k+ cr. & PBIT: Rs 6k+ cr. ▪ F24 Revenue: Rs 33k+ cr. & PBIT: Rs 4.3k+ cr. ▪ 480 bps margin improvement in 2 years (F24 vs F22) ▪ 3.4% MS gain in last 3 years ▪ SUV Revenue MS: #1 in F23 & F24 ▪ 32% YoY FM Revenue growth ▪ LCV < 3.5T: 49.0% MS in F24 ▪ Successful
Slide 43: Financials - Analyst Meet
Financials Analyst Meet Manoj Bhat | 16 May 2024
Slide 44: Q4 F24: Financial Performance (Standalone)
Q4 F24: Financial Performance STANDALONE M&M Rs cr. Revenue PAT 25,436 12% 22,614 2,038 32% 1,549 Q4 F23 Q4 F24 Q4 F23 Q4 F24 43
Slide 45: Q4 F24: Financial Performance (Consolidated)
Q4 F24: Financial Performance CONSOLIDATED M&M Rs cr. Revenue PAT 35,452 9% 32,456 2,637 2,754 4% - Q4 F23 Q4 F24 Q4 F23 Q4 F24 PAT growth in Auto partially offset by decline in TechM 44
Slide 46: F24: Financial Performance (Standalone)
F24: Financial Performance STANDALONE M&M Rs cr. Revenue PAT 1,01,219 17% 86,645 48% 10,718 7,237 Trucks 688 impairment F23 F24 F23 F24 45
Slide 47: F24: Financial Performance (Consolidated)
F24: Financial Performance CONSOLIDATED M&M Rs cr. Revenue PAT 1,39,078 15% 1,21,362 11,269 25% SEL and Susten gains, 1,257 Trucks impairment 9,025 F23 F24 F23 F24 46
Slide 48: F24: PAT
F24: PAT CONSOLIDATED M&M Rs cr. F23 F24 F23 to F24 Auto 1,908 4,714 25% 2,806 86 709 62 11,269 Farm 3,487 3,573 9,025 Services 3,630 2,982 TechM 1,356 647 MMFSL 1,123 1,004 Growth Gems & Invt 1,151 1,331 Total 9,025* 11,269 PAT F23 Auto Farm TechM Other PAT F24 Services 47 * Excluding PY gains on S
Slide 49: Thank You
+mahind - os eo hg. @ t a e ee oo . P .
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