Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q3 2024 Earnings Presentation
31 slides from Mahindra & Mahindra's earnings presentation, Feb 14, 2024
Slide 1: Delivering Scale
Delivering Scale Analyst Meet Dr Anish Shah | 14 February 2024 1
Slide 2: Key Messages
Key Messages • Solid operating performance (ex TechM) Auto continues to gain market share … SUV at 21.0% and LCV* at 49.6% Farm gains market share amidst industry decline … share 80 bps to 41.8% MMFSL turnaround on track … GS3 all time low TechM turnaround initiated … PAT 61% • Growth Gems value
Slide 3: Consolidated M&M results: Q3 F24
Consolidated M&M results: Q3 F24 Rs cr. Revenue PAT 17% YTD 35,299 15% 33%* YTD 30,621 2,658 34% Susten gain and Trucks impairment 693 1,984 Q3 F23 Q3 F24 Q3 F23 Q3 F24 PAT vs PY (excl. Susten and Trucks) Q3 34%, YTD 33% 3 * Excluding PY gains on SEL and Susten; PY Trucks impairment
Slide 4: Strategy Recap: Delivering Scale
Strategy Recap: Delivering Scale Rs cr. Rs cr. Auto and Farm TechM and MMFSL Growth Gems Capitalize on market leadership Unlock full potential 5X challenge 2,099 49%* 719 (35)% 3.3x 1,411* 466 45 14# Q3 F23 Q3 F24 Q3 F23 Q3 F24 Q3 F23 Q3 F24 ▪ Market share gain in Farm and Auto ▪ MMFSL … Sequential
Slide 5: Consistent delivery on commitments
Consistent delivery on commitments Rs cr. RoE (%) EPS (Rs) 2.2$ 11.2$ 19.0# 76.1 14.8 17.7 57.1 13.8 42.4 38.8 0.3 4.4 13.2 6.6 ^ ^ F19 F20 F21 F22 F23 F24 YTD F19 YTD F20 YTD F21 YTD F22 YTD F23 YTD F24 YTD # Annualised basis the YTD RoE 5 ^ Considering continuing & discontinued operations $ Repres
Slide 6: Q3 F24 Analyst and Investor Conference: Automotive & Farm Sectors
Q3 F24 ANALYST AND INVESTOR CONFERENCE AUTOMOTIVE & FARM SECTORS RAJESH JEJURIKAR EXECUTIVE DIRECTOR & CEO, AUTO & FARM SECTORS 14th February 2024
Slide 7: Automotive Business
AUTOMOTIVE BUSINESS mi Rise mahinedra
Slide 8: Q3: Auto
Q3: AUTO TOTAL VOLUMES* 211K 20% YoY REVENUE MS 21.0% 40 bps YoY #1 IN SUV REVENUE MS LCV <3.5T MS # 49.6% 310 bps YoY 8 *Numbers include sales made by MLMML #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 its GVW is slightly
Slide 9: Mahindra Automotive
AUTOCAR = awarns2024 = MANUFACTURER OF THE YEAR MAHINDRA AUTOMOTIVE
Slide 10: Market Leadership in SUV
MARKET LEADERSHIP IN SUV VOLUMES (‘000s) REVENUE MARKET SHARE #2 in MS for 6 consecutive quarters Regained #1 Revenue MS in Q3 & YTD F24 118.9 20.6% 21.0% 114.7 20.2% 19.9% 19.6% 100.2 19.0% 99.1 17.9% 91.6 90.8 17.1% 74.8 75.4 15.6% 56.9 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q3F22 Q
Slide 11: UV Performance & Pipeline
UV PERFORMANCE & PIPELINE Open Bookings: ~226k 8.8k open bookings 35k open bookings 71k open bookings 10k open bookings 101k open bookings ~9k per month ~7k per month ~7k per month ~11k per month ~16k per month XUV3OO & THAR BOLERO SCORPIO-N XUV4OO XUV7OO (Incl RWD) (incl NEO) (incl Classic) ~50k ne
Slide 12: Booking Pipeline
BOOKING PIPELINE ▪ Avg monthly bookings continue to be in the range of ~50k p.m. ▪ Delivery average has increased to 40k p.m. ▪ Cancellations in Nov’23-Jan’24 period increased to ~10% - Due to year end VIN change, cancellations are higher in Nov-Dec (similar to PY) - Cancellations are down to less t
Slide 13: Capacity Planning
CAPACITY PLANNING Q4 F22 Q4 F23 Q4 F24 Per Month Capacity Exit Capacity Exit Capacity Exit Capacity Overall SUVs Capacity 29k 39k 49k ▪ On track to achieve the Q4F24 exit capacity ▪ Q4 run-rate expected to be flattish due to - XUV300 ramp-down for midcycle enhancement - Variant level demand vs capac
Slide 14: #1 in LCV <3.5T
#1 IN LCV <3.5T Q3 F24 MS 49.6%, gain of 3.1% YoY LCV <3.5T Volumes (‘000s) LCV <3.5T MS 65.4 62.9 49.1% 49.6% 49.6% 59.0 61.8 61.3 57.0 58.3 57.9 46.8% 46.5% 44.3% 44.4% 42.7% 44.2 37.5% Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 In F
Slide 15: Last Mile Mobility: E-3W Product Portfolio
LAST MILE MOBILITY: E-3W PRODUCT PORTFOLIO 15
Slide 16: Last Mile Mobility
LAST MILE MOBILITY Market Leadership in E-3W with 59.5% MS in YTD F24 Sales Volume127,439 27,104 ▪ Strong current & upcoming Product Portfolio 23,131 22,945 21,459 8,878 8,967 ▪ Increasing competition… good for industry as electrification will 8,476 8,285 increase 9,658 ▪ L52 electrification is at 1
Slide 17: Auto Conso Financials Q3 F24
AUTO CONSO FINANCIALS Q3 F24 Rs cr. Revenue PBIT 26% 91%* 1,530 19,380 15,391 802* -95 Q3 F23 Q3 F24 Q3 F23 Q3 F24 *Q3 F23 PBIT before MTBD Impairment of Rs 897 cr. 17 PBIT is net of intercompany eliminations, stock reserve and after share of profit from JV/ Associates
Slide 18: Auto Margin Improvement Continues
AUTO MARGIN IMPROVEMENT CONTINUES Auto Standalone PBIT% 1.7% 3.3% 8.3% 6.6% 3.3% Q3 F22 Q3 F23 Q3 F24 Auto Standalone Segment includes Spares business and manufacturing of Two-Wheelers 18
Slide 19: Farm Equipment: Transform Farming, Enrich Lives
FARM EQUIPMENT TRANSFORM FARMING ENRICH LIVES
Slide 20: Q3: Farm
Q3: FARM M&M VOLUMES 101K 4.1% YoY Industry down by 4.9% YoY MARKET LEADERSHIP 41.8% 80 bps YoY 20 Market Share includes Gromax
Slide 21: Rural Economy
RURAL ECONOMY ▪ Negative farm sentiments - GoI spending on Agriculture and rural development remained weak in Q3F24 - Erratic temporal distribution of rainfall adversely impacted kharif output - Negative farm sentiments is also seen in the slow progress of rabi sowing - Mandi arrivals from kharif se
Slide 22: Market Leadership
Q1 F19 Q2 F19 MS includes Gromax Q3 F19 40.5% Q4 F19 Q1 F20 Q2 F20 Q3 F20 40.3% Q4 F20 Q1 F21 MARKET LEADERSHIP Q2 F21 Q3 F21 38.0% Q4 F21 Q1 F22 Q2 F22 FES Market Share Q3 F22 39.4% Q4 F22 Q1 F23 Q2 F23 Q3 F23 41.0% Q4 F23 Q1 F24 Q2 F24 Q3 F24 41.8% 22
Slide 23: Farm Machinery – Scaling Up for Quantum Growth
FARM MACHINERY – SCALING UP FOR QUANTUM GROWTH FM Revenue (Rs cr.)* 223 221 197 165 172 161 157 139 120 Q3 F22 Q4 F22 Q1 F23 Q2 F23 Q3 F23 Q4 F23 Q1 F24 Q2 F24 Q3 F24 ▪ Revenue: Q3 F24 Rs 221 cr. (28% YoY Growth); YTD F24 Rs 641 cr. (29% YoY Growth) ▪ Market Share: No. 2 in Rotavators; 21.9% MS in Y
Slide 24: Farm Conso Financials Q3 F24
FARM CONSO FINANCIALS Q3 F24 Rs cr. Revenue PBIT 0.2% -9% 8,585 8,600 1,158 1,051 Q3 F23 Q3 F24 Q3 F23 Q3 F24 Q3 F24 nos are after hyper inflation accounting for Turkey companies 24 PBIT is net of intercompany eliminations, stock reserve and after share of profit from JV/ Associates
Slide 25: Farm Margins
FARM MARGINS Farm Standalone PBIT % Core Tractor* PBIT% 16.3% # 17.3% 17.5% 16.9%# 16.0% 15.5% Q3 F23 Q2 F24 Q3 F24 Q3 F23 Q2 F24 Q3 F24 #0.7% one-time impact of World Cup sponsorship in Q3 F24 Farm Standalone segment includes Powerol Business 25 *Core Tractor comprises of Tractor business (incl exp
Slide 26: Stability in Volatility
STABILITY IN VOLATILITY Industry Growth % Core Tractor PBIT % 26.9% 23.4% 19.8% 19.7% 19.0% 17.5% 17.9% 18.6% 16.9% 17.3% 17.5% 18.7% 15.8% 16.9%* 8.0% 4.8% 10.5% -1.9% -5.6% -4.9% -6.4% -9.9% F19 F20 F21 F22 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3 F24 *0.7% one-time impact of World Cup sponsorship 2
Slide 27: Financials
Financials Analyst Meet Manoj Bhat | 14 February 2024
Slide 28: Financial results: Q3 F24
Financial results: Q3 F24 CONSOLIDATED M&M Rs cr. Revenue PAT 17% YTD 35,299 15% 33%* YTD 30,621 2,658 34% Susten gain and Trucks impairment 693 1,984 Q3 F23 Q3 F24 Q3 F23 Q3 F24 PAT vs PY (excl. Susten and Trucks) Q3 34%, YTD 33% 28 * Excluding PY gains on SEL and Susten; PY Trucks impairment
Slide 29: PAT: Q3 F24
PAT: Q3 F24 CONSOLIDATED M&M Rs cr. Q3 F23 Q3 F24 Q3 F23 to Q3 F24 Auto 479 1,201 34% 34 13 2,658 Farm 932 898 721 1,984 Services 572 559 TechM 365 143 MMFSL 353 322 Growth Gems & Invt (147) 94 Total 1,984* 2,658 PAT (Q3 F23) AUTO FARM SERVICES PAT (Q3 F24) 29 * Excluding Susten gains and Trucks imp
Slide 30: Thank You
_— Thank You
Slide 31: Standalone financials – Impact of Q1 F24 changes
Standalone financials – Impact of Q1 F24 changes Q3 F24 Rs cr. Old Change New ∆ Comments A. Revenue from operations 25,289 - 25,289 B. Income from Investments* - 354 354 + Dividend Income + Impairment reversal C. Income from Operations 25,289 354 25,642 D. Other Income^ 701 (318) 383 - Dividend Inco