Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q2 FY2025 Earnings Presentation
39 slides from Mahindra & Mahindra's earnings presentation, Nov 7, 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: 7th November, 2024 National Stock Exchange of India Limited BSE Limited "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot
Slide 2: Bold by Design - Analyst Meet
Bold by Design Analyst Meet Dr Anish Shah | 7 November 2024 SAFE HARBOR STATEMENT: “Certain statements with regard to our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such
Slide 3: Key Messages
Key Messages • Strong operating performance in Auto & Farm Auto: SUV revenue market share 21.9%, 190 bps; PBIT margin 9.5%, 140 bps* Farm: Market share 42.5%, 90 bps; PBIT margin 17.5%, 150 bps • Services PAT up 1.8x TechM: Traction in BFSI, EBIT 490 bps … Continued focus on margin expansion MM
Slide 4: Consolidated M&M results: Q2 F25
Consolidated M&M results: Q2 F25 Rs cr. Revenue PAT 10% YTD 37,924 10% 27%* YTD 34,436 3,171 35% 304 Gain on land sale 2,348 - Q2 F24 Q2 F25 Q2 F24 Q2 F25 3 * Excluding PY gains of 763 cr. on KG Mobility listing and MCIE sale
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 23% 2.5x 36% 2,223 169 1,815 351 Teqo 199 gain 139 146 72% 99 58 Q2 F24 Q2 F25 Q2 F24 Q2 F25 Q2 F24 Q2 F25 Q2 F24 Q2 F25 TechM MMFSL ▪ Market share
Slide 6: Capitalize on market leadership
Capitalize on market leadership Rs cr. Auto Farm ▪ No 1 SUV player … Volume 18% ▪ Volume 4% … Uptick in rural sentiment ▪ Strong execution … Margin 140 bps* ~ ▪ Strong execution … Margin 150 bps* ▪ Capacity at 54K units / month, 10% vs March ▪ Challenges in international businesses Q2 F25 VPY Q
Slide 7: Unlock full potential
Unlock full potential MMFSL Tech Mahindra ▪ Asset quality … GS3 50 bps ▪ Mixed demand outlook ▪ Disbursements 1% … driven by vehicles ▪ Traction in BFSI deals ▪ Expansion into mortgage business ▪ Focus on margins … EBIT 490 bps Q2 F25 VPY Q2 F25 VPY GS3% 3.8% 50 bps TCV ($ Mn) 603 (6)% AUM 112.5K
Slide 8: Growth Gems
Growth Gems Rs cr. Logistics Hospitality Real estate ▪ Volume conversion soft in a mixed ▪ 77% occupancy … flat vs PY with ▪ Land acquisition … continues in demand environment higher room inventory focused markets ▪ Focus on volume recovery ▪ Average unit realization … 28%* ▪ Healthy pipeline in IC
Slide 9: Consistent delivery on commitments
Consistent delivery on commitments Rs cr. RoE (%) EPS (Rs) 2.2* 18.9# 52.4 57.6 17.7 18.4 14.8 44.5 13.8 30.3 21.0 0.3 4.4 11.4 0.3 F19 F20 F21^ F22 F23 F24 H1 F25 H1 F19 H1 F20 H1 F21^ H1 F22 H1 F23 H1 F24 H1 F25 # Annualised YTD ROE 8 ^ Considering continuing & discontinued operations * F23 includ
Slide 10: Q2 F25 Analyst Meet Automotive & Farm Sectors
Q2 F25 ANALYST MEET AUTOMOTIVE & FARM SECTORS RAJESH JEJURIKAR EXECUTIVE DIRECTOR & CEO, AUTO & FARM SECTORS 7th November 2024
Slide 11: Farm Equipment: Transform Farming, Enrich Lives
FARM EQUIPMENT TRANSFORM FARMING, ENRICH LIVES
Slide 12: Q2: Farm
Q2: FARM TOTAL VOLUMES 92K 4% YoY EXPORTS 4k 27% YoY MARKET LEADERSHIP 42.5% 90 bps YoY HIGHEST EVER Q2 MS 11 Market Share includes Gromax
Slide 13: Building Domestic Fortress
BUILDING DOMESTIC FORTRESS Market Share 43.7% 41.2% 41.2% 41.6% 40.2% 40.0% 38.2% F19 F20 F21 F22 F23 F24 H1F25 Consistent increase in MS: ▪ H1 F25 MS up by 140 bps vs PY ▪ Oct’24 MS at 44.5%; YTD Oct’24 MS at 43.9% 12 Market Share includes Gromax
Slide 14: Awards
AWARDS M&M TRACTORS WIN 8 AWARDS AT ITOTY 2024 BEST DESIGN AWARD INDIAN TRACTOR OF THE YEAR TRACTOR LAUNCH OF THE YEAR MAHINDRA OJA SWARAJ 855FE MAHINDRA OJA 13
Slide 15: Farm Machinery: On a Continuous Growth Path
FARM MACHINERY: ON A CONTINUOUS GROWTH PATH Q2 Revenue (Rs cr.)* H1 Revenue (Rs cr.)* 518 253 23% 14% 420 223 29% 35% 325 165 Q2 F23 Q2 F24 Q2 F25 H1 F23 H1 F24 H1 F25 * Including MITRA
Slide 16: Farm Conso Financials Q2 F25
FARM CONSO FINANCIALS Q2 F25 Rs cr. Revenue PBIT -2% 6% 8,373 8,194 1,047 1,115 Q2 F24 Q2 F25 Q2 F24 Q2 F25 Nos are after hyper inflation accounting for Turkey companies 15 PBIT is net of intercompany eliminations, stock reserve and after share of profit from JV/ Associates
Slide 17: Farm Margins
FARM MARGINS Farm Standalone PBIT% Core Tractor* PBIT% 1.2% 1.2% 18.7% 17.5% 17.5% 17.5% 16.3% 16.0% Q2 F23 Q2 F24 Q2 F25 Q2 F23 Q2 F24 Q2 F25 Farm Standalone segment includes Powerol Business 16 *Core Tractor comprises of Tractor business (incl exports) and excludes Powerol & Farm Machinery busines
Slide 18: Stability in Volatility
STABILITY IN VOLATILITY Industry Growth % Core Tractor PBIT % 26.9% 23.4% 19.8% 19.7% 19.0% 18.6% 19.7% 18.7% 16.9% 17.5% 17.3% 17.9% 17.5% 16.9% * 17.6% 18.7% 15.8% 8.0% 10.5% 0.5% 0.7% 4.8% -4.9% -1.9% -6.4% -5.6% -9.9% -18.9% F19 F20 F21 F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q
Slide 19: Green Shoots in Tractor Industry
GREEN SHOOTS IN TRACTOR INDUSTRY H2 industry expected to grow in double digits ▪ Surplus rainfall of ~8%; Strong reservoir levels at 87%(15% above LPA) ▪ Growth in Kharif output apparent by significant pickup of mandi arrivals in Oct 2nd half ▪ Hike in MSP of key Rabi crops such as Wheat and Mustard
Slide 20: Automotive Business: Explore the Impossible
AUTOMOTIVE BUSINESS EXPLORE THE IMPOSSIBLE
Slide 21: Q2: Auto
Q2: AUTO Volumes MS SUV 136K RMS 21.9% 18% YoY 190 bps YoY LCV <3.5T2 61.7K Vol MS 52.3% 6% YoY 260 bps YoY Total Volumes1 231K 9% YoY 20 1. Numbers include sales made by MLMML 2. Bolero Max Pickup 2T variant has been classified under LCV 2-3.5T. In SIAM it is classified under LCV 3.5 to 7.5T, since
Slide 22: 3 Launches in 6 Months
3 LAUNCHES IN 6 MONTHS XUV3XO THAR ROXX VEERO 29th April 2024 15th Aug 2024 16th Sep 2024 21
Slide 23: Market Leadership in SUV
MARKET LEADERSHIP IN SUV VOLUMES (‘000s) REVENUE MARKET SHARE #2 in MS for 9 consecutive quarters #1 Revenue MS in Q2 F25 136.0 126.1 124.2 114.7 118.9 21.6% 21.9% 99.1 100.2 21.0% 91.6 90.8 20.6% 20.4% 20.2% 20.0% 19.6% 19.0% Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 Q2F23 Q3F23 Q4F23 Q
Slide 24: Blockbuster Launch of Thar Roxx
BLOCKBUSTER LAUNCH OF THAR ROXX 1.3 Bn+ Video Views | 5.1Mn+ Website visits | 6.4Mn+ Social media engagement 23
Slide 25: Thar Roxx opens with 1,76,218 bookings
THAR ROXX opens with 1,76,218 bookings within 60 minutes 24
Slide 26: #1 in LCV <3.5T
#1 IN LCV <3.5T Q2 F25 MS 52.3%, gain of 2.6% YoY LCV <3.5T Volumes (‘000s) LCV <3.5T MS 52.3% 50.9% 65.4 63.4 49.3% 49.7% 49.6% 61.8 61.3 62.9 61.7 47.5% 58.3 57.9 59.1 46.8% 46.5% 44.4% Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 In F
Slide 27: Launch: Multi-energy modular Urban Prosper Platform
LAUNCH India’s first multi-energy & modular Urban Prosper Platform ▪ Multi-Energy CV Platform: Diesel, CNG & Electric ▪ Spans multiple tonnage: 1 to 2 ton+ payload ▪ Segment first features: - Airbag - 4x Safety Compliance - AIS 096 - 10.25-inch Touchscreen - Reverse Parking Camera - Power Windows -
Slide 28: Awards
AWARDS ▪ Ranked number 2 in After Sales Experience* ▪ Ranked number 2 in Dealer Satisfaction * Basis sample size of 5,002 customers 27 Surveys conducted by FADA in 2024 for 6th Auto retail conclave
Slide 29: Last Mile Mobility
LAST MILE MOBILITY Market Leadership in E-3W with 43.6%1 MS in Q2 F25 Highest ever quarterly E-3W billing at 21K in Q2 F25 Sales Volume2 27,439 28,209 27,104 23,412 22,982 7,061 8,878 ▪ L53 electrification is at 20.0% in Q2 F25 8,967 8,691 7,399 ▪ Two new product refreshes: - eAlfa Plus: higher rang
Slide 30: Auto Conso Financials Q2 F25
AUTO CONSO FINANCIALS Q2 F25 Rs cr. Revenue PBIT 15% 36% 21,755 18,869 1,952 1,431 Q2 F24 Q2 F25 Q2 F24 Q2 F25 29 PBIT is net of intercompany eliminations, stock reserve and after share of profit from JV/ Associates
Slide 31: Auto Margin Improvement Continues
AUTO MARGIN IMPROVEMENT CONTINUES Auto Standalone PBIT% 1.4% 2.2% 9.5% 8.1% 5.9% Q2 F23* # Q2 F24 Q2 F25 *Q2 F23 PBIT % is before MHEL & MTWL merger 30 #Q2 F24 PBIT % excludes Rs 210 cr. on account of sale of business / assets to MLMML Auto Standalone Segment includes Spares business and manufacturi
Slide 32: BSA Launch / Unlimit India event
UNLIMIT INDIA 26™ NOVEMBER 2024 | CHENNAI, INDIA ELECTRIC ORIGIN SUVs mahincira GLOBAL PREMIERE OF THE NEXT INDIAN ICONS Be 62 x<EV SC
Slide 33: BEV Teaser
BEV TEASER 32
Slide 34: Financials - Analyst Meet
Financials Analyst Meet Amarjyoti Barua | 7 November 2024
Slide 35: Financial Results: Q2 F25
Financial Results: Q2 F25 CONSOLIDATED M&M Rs cr. Revenue PAT 10% YTD 37,924 10% 27%* YTD 34,436 3,171 35% 304 Gain on land sale 2,348 - Q2 F24 Q2 F25 Q2 F24 Q2 F25 34 * Excluding PY gains of 763 cr. on KG Mobility listing and MCIE sale
Slide 36: PAT: Q2 F25
PAT: Q2 F25 CONSOLIDATED M&M Rs cr. Q2 F24 Q2 F25 Q2 F24 to Q2 F25 Auto 1,015 1,423 35% 414 3,171 Farm 800 800 408 0 2,348 Services 533 947 TechM 139 351 MMFSL 146 199 Growth Gems & Invt 248 397 Total 2,348 3,171 PAT Q2 F24 Auto Farm Services PAT Q2 F25 35
Slide 37: Financial results: Q2 F25 Standalone
Financial results: Q2 F25 STANDALONE M&M Rs cr. Revenue PAT 12% YTD 28,919 12% 17%* YTD 25,762 3,841 13% 3,393 201 Gain on land sale - Q2 F24 Q2 F25 Q2 F24 Q2 F25 36 * Excluding PY gains of 639 cr. on KG Mobility listing and MCIE sale
Slide 38: Cash Flow: H1 F25
Cash Flow: H1 F25 STANDALONE M&M + MEAL + LMM Co Rs cr. Auto Farm Services Total Rs Rscr. cr. Opening Balance@ 17,818 + Inflow (incl. monetization, dividend) 5,709 2,037 1,439 9,186 - Capex (2,135) (378) (2,513) - EV: MEAL + LMM Co net# (1,762) (1,762) : PE funds raised 350 350 - Investments (51) (1
Slide 39: Thank You
+mahind - os eo hg. @ t a « ee o . P .
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