Mahindra & Mahindra Ltd. · NSE:M&M
Mahindra & Mahindra — Q1 FY2025 Earnings Presentation
32 slides from Mahindra & Mahindra's earnings presentation, Jul 31, 2024
Slide 1: Bold by Design – Analyst Meet
Bold by Design Analyst Meet Dr Anish Shah | 31 July 2024
Slide 2: Key Messages
Key Messages • Strong operating performance in Auto and Farm Market share gains … SUV 130 bps, LCV 160 bps, Tractors 180 bps Continued margin expansion … Auto PAT 35%* , Farm PAT 4%* • MMFSL unlocking its potential MMFSL GS3 at 3.6%, AUM 23%, good progress in tech … PAT 37% TechM turna
Slide 3: Consolidated M&M results: Q1 F25
Consolidated M&M results: Q1 F25 Rs cr. Revenue PAT 37,218 10% 33,892 3,283 20%* 763 2,745 Q1 F24 Q1 F25 Q1 F24 Q1 F25 3 * Excluding PY gains of 763 cr. on KG Mobility and MCIE sale
Slide 4: 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 18%* 23% 37% 34% 23 2,568 257 17 2,178^ 195 239 188 Q1 F24 Q1 F25 Q1 F24 Q1 F25 Q1 F24 Q1 F25 Q1 F24 Q1 F25 TechM MMFSL ▪ Market share gains, volum
Slide 5: Capitalize on market leadership
Capitalize on market leadership Rs cr. Auto Farm ▪ No 1 SUV player … Vols 24% ▪ Domestic industry outlook improving ▪ SUV capacity augmentation continues ▪ Moderation in international markets ▪ Strong execution … Margin 180 bps ~ ▪ Strong execution … Margin 100 bps~ Q1 F25 VPY Q1 F25 VPY SUV r
Slide 6: Unlock full potential
Unlock full potential MMFSL Tech Mahindra ▪ Continued asset quality focus … GS3 80bps ▪ Turnaround journey commenced ▪ Sustained asset growth momentum … 23% ▪ New organisation focused on service delivery ▪ Tech … 100% branches centrally processed ▪ Demand outlook remains mixed Q1 F25 VPY Q1 F25
Slide 7: Growth Gems
Growth Gems Rs cr. Logistics Hospitality Real estate ▪ Growth in 3PL and Last Mile ▪ Robust occupancy at 90% ▪ Healthy GDV addition ▪ Margin due to new account ▪ Memberships & room inventory ▪ Strong presales momentum … extended start up costs growth continuing 1.17 msft, 3x ▪ B2B Express … Loss
Slide 8: Consistent delivery on commitments
Consistent delivery on commitments Rs cr. RoE (%) EPS (Rs) 2.2* 17.7 18.4 19.4# 14.8 31.4 29.3 13.8 15.6 19.7 0.3 4.4 8.2 3.8 (0.9) F19 F20 F21^ F22 F23 F24 Q1 F25 Q1 F19 Q1 F20 Q1 F21^ Q1 F22 Q1 F23 Q1 F24 Q1 F25 # Annualised basis the quarter ROE 8 ^ Considering continuing & discontinued operation
Slide 9: Q1 F25 Analyst and Investor Conference – Automotive & Farm Sectors
Q1 F25 ANALYST AND INVESTOR CONFERENCE AUTOMOTIVE & FARM SECTORS RAJESH JEJURIKAR EXECUTIVE DIRECTOR & CEO, AUTO & FARM SECTORS 31st July 2024
Slide 10: Farm Equipment
FARM EQUIPMENT TRANSFORM FARMING, ENRICH LIVES
Slide 11: Q1: Farm
Q1: FARM VOLUMES 120K 5% YoY EXPORTS 4.5k 45% YoY HIGHEST EVER QUARTERLY VOLUMES MARKET LEADERSHIP 44.7% 180 bps YoY 11 Market Share includes Gromax
Slide 12: Building Domestic Fortress
BUILDING DOMESTIC FORTRESS Market Share 44.7% 43.5% 43.3% 42.9% 42.7% 41.8% 39.1% Consistent increase in MS Q1 F19 Q1 F20 Q1 F21 Q1 F22 Q1 F23 Q1 F24 Q1 F25 12
Slide 13: Green Shoots Indicate Revival in Tractor Industry
GREEN SHOOTS INDICATE REVIVAL IN TRACTOR INDUSTRY ▪ Terms of trade and price realization in mandis remain favorable for farmers ▪ Positive monsoon outlook ▪ Improved GoI spending in rural sector ▪ Start of Navratra in H2 F25 13
Slide 14: Farm Machinery – Scaling Up for Quantum Growth
FARM MACHINERY – SCALING UP FOR QUANTUM GROWTH Revenue (Rs cr.)* 265 34% 197 23% 161 Q1 F23 Q1 F24 Q1 F25 * Including MITRA
Slide 15: Farm Conso Financials Q1 F25
FARM CONSO FINANCIALS Q1 F25 Rs cr. Revenue PBIT = 5% 9,710 9,711 1,540 1,472 Q1 F24 Q1 F25 Q1 F24 Q1 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 16: Farm Margins
FARM MARGINS Farm Standalone PBIT % Core Tractor* PBIT% 1.1% 19.7% 1.0% 18.5% 18.6% 1.7% 17.5% 1.6% 16.9% 15.9% Q1 F23 Q1 F24 Q1 F25 Q1 F23 Q1 F24 Q1 F25 Farm Standalone segment includes Powerol Business 16 *Core Tractor comprises of Tractor business (incl exports) and excludes Powerol & Farm Machin
Slide 17: 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% 16.9% 17.5% 17.3% 17.9% 17.5% 16.9%* 17.6% 18.7% 15.8% 8.0% 10.5% 0.5% 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 17 * 0.7% one
Slide 18: Automotive Business
AUTOMOTIVE BUSINESS EXPLORE THE IMPOSSIBLE
Slide 19: Q1: Auto
Q1: AUTO TOTAL VOLUMES* 212K 14% YoY SUV 124k 24% YoY REVENUE MS 21.6% 130 bps YoY #1 IN SUV REVENUE MS LCV <3.5T MS 50.9% 160 bps YoY 19 *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
Slide 20: Market Leadership in SUV
MARKET LEADERSHIP IN SUV VOLUMES (‘000s) REVENUE MARKET SHARE #2 in MS for 8 consecutive quarters #1 Revenue MS in Q1 F25 126.1 124.2 21.6% 114.7 118.9 21.0% 20.6% 20.2% 19.9% 20.4% 99.1 100.2 19.6% 91.6 90.8 19.0% 75.4 17.1% Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q1F23 Q2F23 Q3F23 Q4
Slide 21: 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 19K 39k 49k 64k 72k Capacity ▪ F25 Exit capacity includes: - Increase in SUV capacity (THAR 5D, XUV3XO/4OO) : 5K - EV capacity : 10K ▪ Additional 8k EV ca
Slide 22: UV Performance & Pipeline
UV PERFORMANCE & PIPELINE Open Bookings: ~178k* 55k open bookings 42k open bookings 13k open bookings 8k open bookings 58k open bookings ~20k new bookings ~5k new bookings ~8k new bookings ~6k new bookings ~12k new bookings THAR BOLERO SCORPIO-N XUV 3XO XUV7OO (Incl RWD) (incl NEO) (incl Classic) ~4
Slide 23: XUV7OO: Anniversary Offer
XUV7OO: ANNIVERSARY OFFER ▪ XUV7OO AX7/AX7L : Price increase since launch: 3.8L/4L ▪ Capacity has gone up from 3.5k to 6k to 10k p.m. ▪ Lower costs now due to: - Value Engineering - Normalized premium on semi-conductors ▪ Minimal Financial Impact: - Higher volumes - Lower costs - Operating Leverage
Slide 24: #1 in LCV <3.5T
#1 IN LCV <3.5T Q1 F25 MS 50.9%, gain of 1.6% YoY LCV <3.5T Volumes (‘000s) LCV <3.5T MS 50.9% 65.4 63.4 49.3% 49.6% 49.6% 61.8 61.3 62.9 47.5% 57.0 58.3 57.9 59.1 46.8% 46.5% 44.3% 44.4% Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 Q1F23 Q2F23 Q3F23 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 In F
Slide 25: Last Mile Mobility
LAST MILE MOBILITY Market Leadership in E-3W with 43.4%3 MS in Q1 F25 Sales Volume1 27,439 27,104 ▪ Highest ever sales of Treo Auto at 11.1K units 22,945 23,412 22,982 8,878 8,967 ▪ L52 electrification is at 19.5% in Q1 F25 8,285 8,691 7,399 ▪ Launched Treo Metal, upgrade of our flagship model with
Slide 26: Auto Conso Financials
AUTO CONSO FINANCIALS Rs cr. Revenue PBIT 16% 45% 19,776 1,787 16,999 1,234 Q1 F24 Q1 F25 Q1 F24 Q1 F25 26 PBIT is net of intercompany eliminations, stock reserve and after share of profit from JV/ Associates
Slide 27: Auto Margin Improvement Continues
AUTO MARGIN IMPROVEMENT CONTINUES Auto Standalone PBIT% 1.8% 2.4% 9.5% 7.7% 5.3% Q1 F23 * Q1 F24 Q1 F25 27 *Q1 F23 Auto Standalone PBIT % is before MHEL & MTWL merger Auto Standalone Segment includes Spares business and manufacturing of Two-Wheelers
Slide 28: Financials – Analyst Meet
Financials Analyst Meet Amarjyoti Barua | 31 July 2024
Slide 29: Financial results: Q1 F25 (Consolidated)
Financial results: Q1 F25 CONSOLIDATED M&M Rs Cr Revenue PAT 37,218 10% 33,892 3,283 20%* 763 2,745 Q1 F24 Q1 F25 Q1 F24 Q1 F25 29 * Excluding PY gains of 763 cr. on KG Mobility and MCIE sale
Slide 30: PAT: Q1 F25
PAT: Q1 F25 CONSOLIDATED M&M Rs cr. Q1 F24 Q1 F25 Q1 F24 to Q1 F25 Auto 987* 1,330 20%* 148 3,283 343 47 Farm 1,191* 1,238 2,745 Services 567 715 TechM 195 239 MMFSL 188 257 Growth Gems & Invt 184* 218 Total 2,745* 3,283 PAT Q1 F24 Auto Farm Services PAT Q1 F25 30 * Excluding PY gains on KG Mobility
Slide 31: Financial results: Q1 F25 (Standalone)
Financial results: Q1 F25 STANDALONE M&M Rs Cr Revenue PAT 27,133 11% 24,403 2,613 23%* 639 2,120 Q1 F24 Q1 F25 Q1 F24 Q1 F25 31 * Excluding PY gains of 639 cr. on KG Mobility and MCIE sale
Slide 32: Thank You
Thank You 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 forward-looking statements.”
Mahindra & Mahindra — Q1 FY2025 Earnings Presentation on 6ix