Analyst Conference May 30, 2012 V S Parthasarathy Mahindra & Mahindra
Agenda Analyst Conference Turbulent times Financials How we fared What drives us Mahindra & Mahindra
Turbulent Times Mahindra & Mahindra
4 All around us The global drivers Euro crisis threatening to de-stabilize financial markets Slowing down China dims global prospects Contradictory US data prints exacerbates Quantitative Easing prospects No linear growth assured Mahindra & Mahindra
5 All around us India story Slowing growth + High inflation + High deficit = Turbulence Subdued performance of financial markets Liquidity threat Volatile currency Policy uncertainty Headwinds from external & internal sources Mahindra & Mahindra
6 Cheat sheet The emerging themes Domestic Global Monetary maneuverability EURO break up can have a limited cascading impact on global growth & financial markets Funding for growth still an Funding for growth still an Global growth is projected to Global growth is projected to issue drop from about 4% in 2011 to about 3.5% in 2012 (source: IMF) Currency under threat on Access to credit & volatility in account of Current Account exchange rates can inhibit Deficit planning & growth Mahindra & Mahindra
Financials Mahindra & Mahindra
M&M + MVML FINANCIAL PERFORMANCE (Rs. Crores) F- 2012 F- 2011 % Inc/ Q4 Q4 (Dec) Gross Turnover 10,333.62 7,542.47 37.0 Net Sales & Op. Inc. 9,118.77 6,853.69 33.0 PBIT PBIT 978.04 978.04 897.98 897.98 8.9 8.9 PAT 911.26 672.36 35.5 PAT (Excl EI) 802.99 672.36 19.4 OPM (%) 12.10 14.01 8 Mahindra & Mahindra
M&M + MVML FINANCIAL PERFORMANCE (Rs. Crores) F- 2012 F- 2011 % Inc/ (Dec) Gross Turnover 35,005.16 26,201.10 33.6 Net Sales & Op. Inc. Net Sales & Op. Inc. 31,381.11 31,381.11 23,564.11 23,564.11 33.2 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 9 Mahindra & Mahindra
M&M + MVML BALANCE SHEET (Rs. Crores) F- 2012 F- 2011 Sources of Funds Shareholder's Funds 12,285.86 10,310.00 Loan Funds* 4,546.04 3,307.37 Deferred Tax Liability 588.96 354.38 Total 17,420.86 13,971.75 * Includes current maturities of Long Term Liabilities 10 Mahindra & Mahindra
M&M + MVML BALANCE SHEET (Rs. Crores) F- 2012 F- 2011 Application of Funds Fixed Assets 6,881.58 5,517.22 Current Investments 1,173.04 720.27 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 11 Mahindra & Mahindra
M&M+MVML Gearing & Coverage Ratio (Rs. Crores) F- 2012 Total Debt/Equity 0.37 Total Debt/EBIDTA Total Debt/EBIDTA 1.01 1.01 Interest Coverage Ratio * 14.04 Debt Service Ratio * 7.22 * as per definition suggested in the Listing Agreement for debt securities 12 Mahindra & Mahindra
FINANCIAL HIGHLIGHTS F-2012 CONSOLIDATED F-2012 CONSOLIDATED RESULTS 13 Mahindra & Mahindra
M&M Group Consolidated Results ( Rs. Crores ) F- 2012 F- 2011 % Inc/ (Dec) Net Revenue 59,744.95 37,180.62 60.7 PAT before MI # 3,059.92 3,174.76 (3.6) PAT after MI 3,126.66 3,079.73 1.5 # includes share in profits of Associates 14 Mahindra & Mahindra
M&M Group Consolidated Results (Without Ssangyong) (Rs. Crores) F- 2012 F- 2011 % Inc/ (Dec) Net Revenue 47,491.74 37,180.62 27.7 PAT before MI # 3,667.80 3,174.76 15.5 PAT After MI 3,521.84 3,079.73 14.4 # includes share in profits of Associates 15 Mahindra & Mahindra
Subsidiary Company Results (Without Ssangyong) (Rs. Crores) F- 2012 F- 2011 % Inc/ (Dec) Net Revenue 15,777.36 13,317.52 18.5 PAT before MI # PAT before MI # 832.77 832.77 615.66 615.66 35.3 35.3 PAT After MI 685.64 520.66 31.7 # includes share in profits of Associates 16 Mahindra & Mahindra
Group Companies Top 4 PAT Earners (Rs. Crores) Name of Companies F- 2012 F- 2011 % Inc/ (Dec) Tech Mahindra 1,095.45 644.13 70.1 Mahindra & Mahindra Financial 643.50 643.50 492.77 492.77 30.6 30.6 Services Limited Services Limited Mahindra Lifespace Limited 119.08 108.20 10.1 Mahindra Holidays & Resorts 102.34 100.30 2.0 India Limited PAT is on consolidated basis post minority interests 17 Mahindra & Mahindra
How we fared Mahindra & Mahindra
Trend in Revenue – M&M + MVML Gross Revenue & Other Income 40,000 35,005 35,000 CAGR 27.3% 30,000 Rs Crores 25,000 20,000 R 15,000 10,000 13,329 5,000 F-2008 F-2009 F-2010 F-2011 F-2012 Year 19 Mahindra & Mahindra
Trend in Profits – M&M + MVML Profit After Tax 3,500 2,997 3,000 CAGR 28.4% 2,500 Rs Crores 2,000 2,000 Rs 1,500 1,000 1,103 500 F-2008 F-2009 F-2010 F-2011 F-2012 Year 20 Mahindra & Mahindra
M&M Group Trend in Revenue (Excl. Ssangyong) Gross Revenue & Other Income (without Ssangyong) 55,000 50,000 CAGR 17.6% 45,000 51,105 rores 40,000 40,000 Rs Cro 35,000 30,000 25,000 26,726 20,000 15,000 10,000 5,000 F-2008 F-2009 F-2010 F-2011 F-2012 Year 21 Mahindra & Mahindra
M&M Group Trend in PAT (after MI) (Excl. Ssangyong) Profit After Tax (after MI) (without Ssangyong) 4,006.00 3,506.00 3,521.84 CAGR 22.4% 3,006.00 PM (%) 2,506.00 OPM 2,006.00 1,571.12 1,506.00 1,006.00 506.00 6.00 F-2008 F-2009 F-2010 F-2011 F-2012 Year 22 Mahindra & Mahindra
23 Stock Performance 1 st April 2011 till date 130 120 110 100 90 Mahindra down 8% Sensex down 15% 80 70 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 & Mahindra
24 Future ready Balance sheet strength Stronger Balance Sheet…. 0.90 0.82 0.80 0.70 Debt / EBITDA Ratio 3.00 0.60 0.60 0.56 2.46 2.50 0.50 0.40 0.37 2.00 1.84 0.37 1.73 0.30 1.50 0.23 0.20 1.01 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 0.91 1.00 Debt Equity Ratio 0.64 0.50 Notes: 0.00 1. Index benchmarks are on Calendar year basis FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 2. Blue indicate Sensex Ability to service debt…. 3. Index benchmark sourced from Bloomberg Mahindra & Mahindra
25 Growing in Strength Stable in turbulence Strong revenue growth with leadership position Operating margin – ‘best in class’ Mahindra & Mahindra
26 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 ) Consolidation of stake in Swaraj Automotive Ltd & MADPL, Entry to Micro irrigation – EPC Ltd Fund raising & debt restructuring for group companies Mahindra & Mahindra
What drives us? Mahindra & Mahindra
The House of Mahindra CORE PURPOSE CORE PURPOSE To challenge conventional thinking and use all the resources at our disposal to drive positive change in our stakeholders’ lives and communities – to enable them to RISE Brand Pillar Brand Pillar Brand Pillar Accepting No Driving Positive Alternative Limits Change Thinking - Think big, think global - Pursue new approaches - Step into your customer’s - Challenge conventional - Celebrate diversity shoes thinking thinking - Focus innovation on - Build quality to delight - Be adaptable and agile customer needs customers - Take well reasoned risks - Invent your way to growth - Forge strong relationships - Seek breakthrough solutions - Work hard. Have fun - Rise with your - Rise by shaping - Rise by daring to ingenuity destinies disturb the universe CORE VALUES : Good Corporate Citizenship | Professionalism | Customer First | Quality Focus | Dignity of the Individual Mahindra & Mahindra
29 Troika Organizational Sustainability Culture Good Governance “GVC Level I” by CRISIL Mahindra & Mahindra
and you have recognized recognized us… Mahindra & Mahindra
Thank you Visit our website at www.mahindra.com Visit our website at www.mahindra.com Mahindra & Mahindra
Mahindra & Mahindra
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