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AnalystConference
Mahindra & Mahindra
May 30, 2012V S Parthasarathy
Agenda
Turbulent times
Financials
Analyst Conference
Mahindra & Mahindra
How we fared
What drives us
Turbulent Times
Mahindra & Mahindra
All around us
Euro crisis threatening to de-stabilize financial
markets
Slowing down China dims global prospects
The global drivers
4
Mahindra & Mahindra
Contradictory US data prints exacerbates
Quantitative Easing prospects
No linear growth assured
All around us
Subdued performance of financial markets
Liquidity threat
India story
5
Slowing growth + High inflation + High deficit = Turbulence
Mahindra & Mahindra
Volatile currency
Policy uncertainty
Headwinds from external & internal sources
Cheat sheet
Global
EURO break up can have a
cascading impact on global
growth & financial markets
Global growth is projected to
Domestic
Monetary maneuverability
limited
Funding for growth still an
6
The emerging themes
Mahindra & Mahindra
Global growth is projected to
drop from about 4% in 2011
to about 3.5% in 2012
(source: IMF)
Access to credit & volatility in
exchange rates can inhibit
planning & growth
Funding for growth still an
issue
Currency under threat on
account of Current Account
Deficit
Financials
Mahindra & Mahindra
M&M + MVMLFINANCIAL PERFORMANCE
(Rs. Crores)
F- 2012
Q4
F- 2011
Q4
% Inc/
(Dec)
Gross Turnover 10,333.62 7,542.47 37.0
Net Sales & Op. Inc. 9,118.77 6,853.69 33.0
PBIT 978.04 897.98 8.9
Mahindra & Mahindra8
PBIT 978.04 897.98 8.9
PAT 911.26 672.36 35.5
PAT (Excl EI) 802.99 672.36 19.4
OPM (%) 12.10 14.01
M&M + MVMLFINANCIAL PERFORMANCE
(Rs. Crores)
F- 2012 F- 2011 % Inc/
(Dec)
Gross Turnover 35,005.16 26,201.10 33.6
Net Sales & Op. Inc. 31,381.11 23,564.11 33.2
Mahindra & Mahindra9
Net Sales & Op. Inc. 31,381.11 23,564.11 33.2
PBIT 3,964.85 3,574.77 10.9
PAT 2,997.04 2,687.03 11.5
PAT (Excl EI) 2,888.77 2,569.55 12.4
OPM (%) 13.26 15.37
M&M + MVMLBALANCE SHEET
(Rs. Crores)
F- 2012 F- 2011
Sources of Funds
Shareholder's Funds 12,285.86 10,310.00
Mahindra & Mahindra10
* Includes current maturities of Long Term Liabilities
Loan Funds* 4,546.04 3,307.37
Deferred Tax Liability 588.96 354.38
Total 17,420.86 13,971.75
(Rs. Crores)
M&M + MVMLBALANCE SHEET
F- 2012 F- 2011
Application of Funds
Fixed Assets 6,881.58 5,517.22
Current Investments 1,173.04 720.27
Mahindra & Mahindra11
Long Term Investments 8,314.11 7,245.91
Cash & Bank Balance 1,290.92 614.92
Proposed Dividend (868.61) (802.64)
Other Assets (Net) 629.83 676.07
Total 17,420.86 13,971.75
M&M+MVMLGearing & Coverage Ratio
(Rs. Crores)
F- 2012
Total Debt/Equity 0.37
Total Debt/EBIDTA 1.01
Mahindra & Mahindra12
Total Debt/EBIDTA 1.01
Interest Coverage Ratio * 14.04
Debt Service Ratio * 7.22
* as per definition suggested in the Listing Agreement for debt securities
FINANCIAL HIGHLIGHTS
F-2012 CONSOLIDATED
Mahindra & Mahindra13
F-2012 CONSOLIDATEDRESULTS
(Rs. Crores)
M&M Group Consolidated Results
F- 2012 F- 2011 % Inc/
(Dec)
Net Revenue 59,744.95 37,180.62 60.7
Mahindra & Mahindra14
# includes share in profits of Associates
PAT before MI # 3,059.92 3,174.76 (3.6)
PAT after MI 3,126.66 3,079.73 1.5
(Rs. Crores)
M&M Group Consolidated Results(Without Ssangyong)
F- 2012 F- 2011 % Inc/
(Dec)
Net Revenue 47,491.74 37,180.62 27.7
Mahindra & Mahindra15
# includes share in profits of Associates
PAT before MI # 3,667.80 3,174.76 15.5
PAT After MI 3,521.84 3,079.73 14.4
(Rs. Crores)
Subsidiary Company Results(Without Ssangyong)
F- 2012 F- 2011 % Inc/
(Dec)
Net Revenue 15,777.36 13,317.52 18.5
PAT before MI # 832.77 615.66 35.3
Mahindra & Mahindra16
# includes share in profits of Associates
PAT before MI # 832.77 615.66 35.3
PAT After MI 685.64 520.66 31.7
(Rs. Crores)
Group Companies Top 4 PAT Earners
Name of Companies F- 2012 F- 2011 % Inc/
(Dec)
Tech Mahindra 1,095.45 644.13 70.1
Mahindra & Mahindra Financial
Services Limited643.50 492.77 30.6
Mahindra & Mahindra17
PAT is on consolidated basis post minority interests
Services Limited643.50 492.77 30.6
Mahindra Lifespace Limited 119.08 108.20 10.1
Mahindra Holidays & Resorts
India Limited102.34 100.30 2.0
How we fared
Mahindra & Mahindra
Trend in Revenue – M&M + MVML
35,005
20,000
25,000
30,000
35,000
40,000
Rs
Cro
res
Gross Revenue & Other Income
CAGR 27.3%
Mahindra & Mahindra19
13,329
5,000
10,000
15,000
F-2008 F-2009 F-2010 F-2011 F-2012
Rs
Cro
res
Year
Trend in Profits – M&M + MVML
2,997
2,000
2,500
3,000
3,500
Rs
Cro
res
Profit After Tax
CAGR 28.4%
Mahindra & Mahindra20
1,103
500
1,000
1,500
2,000
F-2008 F-2009 F-2010 F-2011 F-2012
Rs
Cro
res
Year
M&M GroupTrend in Revenue (Excl. Ssangyong)
51,105
40,000
45,000
50,000
55,000
Rs
Cro
res
Gross Revenue & Other Income(without Ssangyong)
CAGR 17.6%
Mahindra & Mahindra21
26,726
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
F-2008 F-2009 F-2010 F-2011 F-2012
Rs
Cro
res
Year
M&M GroupTrend in PAT (after MI) (Excl. Ssangyong)
3,521.84
2,506.00
3,006.00
3,506.00
4,006.00
OP
M(%
)Profit After Tax (after MI)
(without Ssangyong)
CAGR 22.4%
Mahindra & Mahindra22
1,571.12
6.00
506.00
1,006.00
1,506.00
2,006.00
F-2008 F-2009 F-2010 F-2011 F-2012
OP
M(%
)
Year
Stock Performance1st April 2011 till date
23
110
120
130
Mahindra & Mahindra
70
80
90
100
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12
Mahindra down 8%Sensex down 15%
2.462.50
3.00
Future readyBalance sheet strength
24
Stronger Balance Sheet….
Debt / EBITDA Ratio0.60
0.56
0.82
0.50
0.60
0.70
0.80
0.90
Mahindra & Mahindra
1.73
0.91
0.64
1.01
1.84
0.00
0.50
1.00
1.50
2.00
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Debt Equity Ratio
Ability to service debt….
Notes:1. Index benchmarks are on Calendar year basis2. Blue indicate Sensex3. Index benchmark sourced from Bloomberg
0.37
0.23
0.37
0.20
0.30
0.40
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Growing in Strength
Strong revenue growth with leadershipposition
Operating margin – ‘best in class’
25
Stable in turbulence
Mahindra & Mahindra
Finance and M&A Milestones
Leveraging group strength for benefit of ecosystem
Raised US$ 150 million ECB at benchmark pricing
Crisil credit rating outlook upgrade from AA+(negative) to AA+ (stable)
26
Mahindra & Mahindra
Consolidation of stake in Swaraj Automotive Ltd &MADPL,
Entry to Micro irrigation – EPC Ltd
Fund raising & debt restructuring for groupcompanies
What drives us?
Mahindra & Mahindra
The House of Mahindra
Accepting NoLimits
AlternativeThinking
Driving PositiveChange
To challenge conventional thinking and use all the resources at our disposal to drivepositive change in our stakeholders’ lives and communities – to enable them to RISE
Brand Pillar Brand Pillar Brand Pillar
- Think big, think global
- Challenge conventional
thinking
- Pursue new approaches
- Celebrate diversity
- Step into your customer’s
shoes
CORE PURPOSECORE PURPOSE
Mahindra & Mahindra
CORE VALUES : Good Corporate Citizenship | Professionalism | Customer First | Quality Focus| Dignity of the Individual
thinking
- Be adaptable and agile
- Take well reasoned risks
- Seek breakthrough solutions
- Rise by daring to
disturb the universe
- Focus innovation on
customer needs
- Invent your way to growth
- Rise with your
ingenuity
- Build quality to delight
customers
- Forge strong relationships
- Work hard. Have fun
- Rise by shaping
destinies
Troika
SustainabilityOrganizationalCulture
29
Mahindra & Mahindra
Good Governance
“GVC Level I” by CRISIL
and youhaverecognized
Mahindra & Mahindra
recognizedus…
Thank youVisit our website at www.mahindra.com
Mahindra & Mahindra
Visit our website at www.mahindra.com
Mahindra & Mahindra