Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q3 FY2022 Earnings Presentation
39 slides from Mahindra & Mahindra's earnings presentation, Feb 10, 2022
Slide 1: Exchange filing cover letter for 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: 10th February, 2022 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block Da
Slide 2: Reigniting Value Creation
Reigniting Value Creation Analyst Meeting Dr Anish Shah | 10 February 2022 1
Slide 3: Key Messages
KEY MESSAGES • Steady revenue growth … Q3 8%; Q3 YTD 29% • Margin pressure … driven by commodity price, operating leverage • PAT after EI … Q3 2.5x; Q3 YTD 5x; results from capital allocation • Solid consolidated PAT after EI … Q3 57%; Q3 YTD 2.4x; Strong performance across businesses 2
Slide 4: Financial Summary: Q3 F22 Standalone Revenue
FINANCIAL SUMMARY: Q3 F22 STANDALONE M&M Rs Cr Revenue 15,239 8% 14,057 29% YTD ▪ Auto revenue 15%, bookings at 155K+ ▪ Tractor YTD growth 15%, Intl. exports strong ▪ Supply chain headwinds continue to be managed Q3 F21 Q3 F22 3
Slide 5: Financial Summary: Q3 F22 Standalone PAT
FINANCIAL SUMMARY: Q3 F22 STANDALONE M&M Rs Cr PAT before EI PAT after EI 1,745 1,353 (22)% 1,353 2.5x 28% YTD 5x YTD 531 Q3 F21 Q3 F22 Q3 F21 Q3 F22 Commodity & supply chain headwinds offset by overall strong performance 4
Slide 6: Financial Summary: Q3 F22 Consolidated PAT
FINANCIAL SUMMARY: Q3 F22 CONSOLIDATED M&M Rs Cr PAT before EI PAT after EI 1,987 57% 1,798 28% 2.4x YTD 53% YTD 1,410 1,268 Q3 F21 Q3 F22 Q3 F21 Q3 F22 Strong performance across Group companies Excludes Ssangyong due to discontinued operations 5
Slide 7: Farm Performance
FARM PERFORMANCE CONSOLIDATED M&M Rs Cr Revenue PBIT Highlights 6,815 6,970 2% (24)% 15% YTD 4% YTD 1,237 ▪ M&M market share 140 bps 940 ▪ YoY commodity price inflation ▪ Intl subs PBIT +ve for 6 quarters Q3 F21 Q3 F22 Q3 F21 Q3 F22 Market share growth in tough quarter * Market share inclusive o
Slide 8: Auto Performance
AUTO PERFORMANCE CONSOLIDATED M&M Rs Cr Revenue PBIT Highlights 9,958 16% ▪ ECU shortage volume loss of ~20K 8,606 40% YTD ▪ YoY commodity inflation impact 577 (40)% ▪ Stringent cost control measures 347 2.8x YTD ▪ Improving QoQ PBIT% Q3 F21 Q3 F22 Q3 F21 Q3 F22 Challenges easing, moving into high
Slide 9: MMFSL Performance
MMFSL PERFORMANCE Standalone MMFSL Rs Cr Profit after Tax GNPA% Provisions 60% of 1Q F22 provisions reversed 1,023 894 764 746 15.5% 12.7% 11.3% (2,517) (1,529) Q1 F22 Q2 F22 Q3 F22 Q1 F22 Q2 F22 Q3 F22 Q1 F22 Q2 F22 Q3 F22 GNPA reduction on track … disbursements up 28% YoY 8
Slide 10: MMFSL Performance: GNPA deep dive
MMFSL PERFORMANCE Rs Cr GNPA – deep dive Highlights 7,931 1,862 7,088 ▪ On track to meet commitment of 70-80% provision 1,360 341 reversal by Q4 F22 Stage 3 AUM ▪ Collection efficiency focus for Stage 2 and Stage 3 ▪ Additional provision of Rs. 500-1,500 crs in Q4 F22 Sep-21 Resolved Forward flow Ad
Slide 11: TechM Performance
TECHM PERFORMANCE Rs Cr Profit after Tax Highlights ▪ Growth led by Comms, manufacturing, Healthcare, Retail 1,310 1,369 5% 21% YTD ▪ Fourth quarter with TCV of $700M+ ▪ Quarterly attrition down QoQ, concentrated hiring ▪ Only Indian IT company to score ‘A’ in both CDP climate Q3 F21 Q3 F22 change &
Slide 12: Growth Gems (Listed)
GROWTH GEMS (LISTED) Rs Cr Logistics Hospitality Real estate YTD YTD YTD 100%+ 47% 100%+ 25 ++ PAT PAT PAT 18 (67%) 14 ++ (11) 6 0 Q3 F21 Q3 F22 Q3 F21 Q3 F22 Q3 F21 Q3 F22 ▪ Profitability seasonal & start up ▪ Festive season w/ 80%+ occupancy ▪ IC business delivers with multiple costs for new pro
Slide 13: Scale Digital Platforms
SCALE DIGITAL PLATFORMS Digital FinCo AgriTech Receivables 12
Slide 14: Q3 F22 Analyst and Investor Conference: Automotive & Farm Sectors
Q3 F22 Analyst and Investor Conference Automotive & Farm Sectors RAJESH JEJURIKAR 10th February 2022 Executive Director, Auto & Farm Sectors
Slide 15: Highlights – Q3
HIGHLIGHTS – Q3 Farm Auto Market Share Uptick Margin Management MS at 39.4% – Gain of 1.4% Best-in-class Margins 2nd Highest ever Q3 Volume & PBIT Strong Demand PBIT: 905 Crs ▪ Huge Booking Pipeline: 155k + (incl XUV 700) ▪ XUV700: Multiple ‘Car of the Year’ Awards Strengthening Core Domestic EV 3W
Slide 16: Auto + Farm Segments: Revenue
AUTO + FARM SEGMENTS: REVENUE Rs Cr Standalone Revenue Consolidated Revenue 9% 10% Q3 F22 14,765 15,421 16,928 13,593 Q3 F21 Q3 F22 Q3 F21 Q3 F22 29% 27% YTD F22 38,955 45,401 30,165 35,685 YTD F21 YTD F22 YTD F21 YTD F22 *Addition of published standalone & consolidated segment results of Auto and F
Slide 17: Auto + Farm Segments: PBIT Q3 F22
AUTO + FARM SEGMENTS : PBIT Q3 F22 Rs Cr PBIT (Before EI) – Standalone* PBIT (Before EI) – Consolidated* (32%) (29%) 1,850 1,814 1,287 1,254 1,236 1,237 905# 940 614 577 349 348 Q3 F21 Q3 F22 Q3 F21 Q3 F22 Auto Farm Auto Farm # 2nd Highest ever Q3 PBIT *Addition of published standalone & consolidate
Slide 18: Auto + Farm Segments: PBIT YTD F22
AUTO + FARM SEGMENTS : PBIT YTD F22 Rs Cr PBIT (Before EI) – Standalone* PBIT (Before EI) – Consolidated* 1% 16% 3,794 3,540 3,565 3,264 2,902 3,148 3,098 3,034 442 662 646 231 YTD F21 YTD F22 YTD F21 YTD F22 Auto Farm Auto Farm *Addition of published standalone & consolidated segment results of Aut
Slide 19: Farm Equipment
FARM EQUIPMENT TRANSFORM FARMING ENRICH LIVES 18
Slide 20: FES – Performance Highlights
FES – Performance Highlights Stability in Volatility Continued Domestic Leadership Industry Growth % PBIT % 63.4% 41.4% 38.9% 26.8% 41.8% 40.3% 40.1% 22.0% 39.4% 39.1% 37.9% 39.4% 19.4% 17.6% 20.4% 20.3% 18.7% 17.3% 38.2% 38.0% 24.4% 23.4% -6.0% -9.0% -10.6% -13.7% -13.5% Q3 F20 Q4 F20 Q1 F21 Q2 F21
Slide 21: Rural Stress
RURAL STRESS Lower Govt. Spending Negative Terms of Trade for Farmers 40 Government Spending Index Farm Output vs Farm Input Inflation 70 30 60 20 50 10 40 0 30 35 20 -10 10 -20 Dec-17 Sep-18 Dec-18 Sep-19 Dec-19 Sep-20 Dec-20 Sep-21 Dec-21 Mar-19 Mar-18 Jun-18 Jun-19 Mar-20 Jun-20 Mar-21 Jun-21 - M
Slide 22: Innovative Revolutionary Concept: CODE by Swaraj
INNOVATIVE REVOLUTIONARY CONCEPT CODE by Swaraj: A highly versatile, multipurpose farm machine Light weight, short turning radius Dual Ground Clearance Bi-directional Crops Applications Target Customers Row crops: Fruits & Inter-row weeding and Horticulture Farmers Vegetables, Sugar Cane spraying Ce
Slide 23: FES Technology – Teching Farming Places
FES TECHNOLOGY – TECHING FARMING PLACES DigiSense 4G Krish-e Nidaan Smart Harvesting ▪ Enables instant detection of pests and diseases and offers solution Video ▪ Leverages AI for all farmers large Video and small ▪ 140K users ▪ Enables remote tracking of tractor ▪ Enables sugarcane mills to locatio
Slide 24: FES Global Businesses Q3 – From Consolidation to Growth
FES GLOBAL BUSINESSES Q3 – FROM CONSOLIDATION TO GROWTH MAgNA Sampo Focus on cost structure & Growth Billing Vol 35% ; MS 5.5% [<110HP] Continued Positive PBT MAM PBT better than PY Turkey Erkunt Traktor : Retail vol 14% , MS 7.4% : Highest Q3 PBT* Erkunt Foundry : Highest ever PBT* South Africa Mar
Slide 25: FES Subs Turnaround: Highest Ever YTD PBIT
FES SUBS* TURNAROUND : HIGHEST EVER YTD PBIT PBIT Rs Crs 107 105 3 1 29 34 -69 -650 6 Consecutive +ve Qtrs -884 F19 F20 Q1 F21 Q2 F21 Q3 F21 Q4 F21 Q1 F22 Q2 F22 Q3 F22 ▪ Due to cyclical downturn, Q3 is always a subdued quarter * FES Global Subsidiaries + Gromax 24
Slide 26: Automotive Business
AUTOMOTIVE BUSINESS 25
Slide 27: XUV700 – The Rush Continues
XUV700 – THE RUSH CONTINUES Awards Galore Best of 2021 Team BHP Car of the Year Shutter Drives Car of the year Car Model Votes % Votes Mahindra XUV700 1,267 62.85% Tata Punch 194 9.62% Tata Safari 116 5.75% Force Gurkha 69 3.42% Indian Vehicle Awards Car of the Year Motor Vikatan Skoda Kushaq 66 3.2
Slide 28: Strong Demand
STRONG DEMAND Total Open Bookings – 155k+ XUV 300 Bolero (incl Neo) ▪ 7.5k + monthly bookings in Q3 ▪ 7k + monthly bookings in Q3 ▪ 11k + open bookings ▪ 14k + open bookings Scorpio Thar ▪ 5.5k + monthly bookings in Q3 ▪ 4k + monthly bookings in Q3 ▪ ~9k open bookings ▪ 31k + open bookings Pik-Ups ▪
Slide 29: Focus Areas
FOCUS AREAS Focus on Margins ▪ Material Cost Savings ▪ Fixed Cost Optimization ▪ Selling Price Increases Focus on Managing Volumes ▪ Volume loss of ~20k due to semi conductor shortages ▪ Short / medium term actions to improve semi conductor supplies 28
Slide 30: Actions to Ease Semiconductor Supply Constraints
ACTIONS TO EASE SEMICONDUCTOR SUPPLY CONSTRAINTS Short Term Actions ▪ New IC source being developed to create fungibility ▪ Create reserve stock of critical ICs Medium Term Actions ▪ Product development: Find suitable substitutes for complex multifunction ICs ▪ Sourcing: Alternate / multi sourcing o
Slide 31: Financials
Financials Analyst Meeting Manoj Bhat | 10 February 2022 30
Slide 32: Financial Summary: Q3 F22 Standalone Revenue and EBITDA
FINANCIAL SUMMARY: Q3 F22 STANDALONE M&M Rs Cr Revenue EBITDA 15,239 8% 14,057 29% YTD 2,386 1,806 (24%) 2% YTD Q3 F21 Q3 F22 Q3 F21 Q3 F22 31
Slide 33: Financial Summary: Q3 F22 Standalone PAT
FINANCIAL SUMMARY: Q3 F22 STANDALONE M&M Rs Cr PAT before EI PAT after EI 1,745 1,353 (22)% 1,353 2.5x 28% YTD 5x YTD 531 Q3 F21 Q3 F22 Q3 F21 Q3 F22 32
Slide 34: PAT (Before EI): Q3 F22 Standalone
PAT (BEFORE EI): Q3 F22 STANDALONE M&M Rs Cr Q3 F21 Q3 F22 Q3 F21 to Q3 F22 1,745 Farm 949 715 (22)% 234 159 1 1,353 Auto 436 277 Group companies 360 361 Total 1,745 1,353 PAT BEFORE EI (Q3 F21) FARM AUTO GROUP COMPANIES PAT BEFORE EI (Q3 F22) Two Wheeler, Powerol and SBU included in Domestic Auto 3
Slide 35: Financial Summary: Q3 F22 Consolidated Revenue
FINANCIAL SUMMARY: Q3 F22 CONSOLIDATED M&M Rs Cr Revenue -1) 23,594 9% 21,626 22% YTD Segment Q3 F21 Q3 F22 V% Auto 8,606 9,958 16% FES 6,815 6,970 2% Group Cos. 6,764 7,297 8% Inter-segment (559) (631) Q3 F21 Q3 F22 (1-Tech Mahindra (Associate) revenue not included above 34
Slide 36: Financial Summary: Q3 F22 Consolidated PAT
FINANCIAL SUMMARY: Q3 F22 CONSOLIDATED M&M Rs Cr PAT before EI PAT after EI 1,987 57% 1,798 28% 2.4x YTD 53% YTD 1,410 1,268 Q3 F21 Q3 F22 Q3 F21 Q3 F22 Excludes Ssangyong due to discontinued operations 35
Slide 37: PAT (Before EI): Q3 F22 Consolidated
PAT (BEFORE EI): Q3 F22 CONSOLIDATED M&M Rs Cr Q3 F21 Q3 F22 Q3 F21 to Q3 F22 28% 1,798 Farm 963 736 819 1,410 227 Auto 369 165 204 Group companies 78 897 PAT BEFORE EI AUTO FARM GROUP PAT BEFORE EI (Q3 F21) COMPANIES (Q3 F22) Total 1,410 1,798 Two Wheeler, Powerol and SBU included in Domestic Auto
Slide 38: Appendix
Appendix
Slide 39: Segment Results: Q3 F22
SEGMENT RESULTS: Q3 F22 Rs Cr Revenue PBIT Q3 F21 Q3 F22 Q3 F21 Q3 F22 Automotive -1) 8,606 9,958 577 347 Farm equipment 6,815 6,970 1,237 940 Financial services 2,949 2,926 (367) 1,311 Hospitality 496 563 16 29 Real estate 71 26 (20) (43) Others 3,248 3,782 115 42 Less: Inte
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