Analyst Conference May 30, 2012 V S Parthasarathy Mahindra & - - PowerPoint PPT Presentation

Analyst Conference

Mahindra & Mahindra

May 30, 2012 V 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

• n

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 + MVML FINANCIAL 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 & Mahindra

8 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 + 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. 31,381.11 23,564.11 33.2

Mahindra & Mahindra

9 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 + MVML BALANCE SHEET

(Rs. Crores)

F- 2012 F- 2011 Sources of Funds

Shareholder's Funds 12,285.86 10,310.00

Mahindra & Mahindra

10

* 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 + MVML BALANCE SHEET

F- 2012 F- 2011

Application of Funds Fixed Assets 6,881.58 5,517.22 Current Investments 1,173.04 720.27

Mahindra & Mahindra

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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+MVML Gearing & Coverage Ratio

(Rs. Crores)

F- 2012 Total Debt/Equity 0.37 Total Debt/EBIDTA 1.01

Mahindra & Mahindra

12

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 & Mahindra

13

F-2012 CONSOLIDATED RESULTS

(Rs. Crores)

M&M Group Consolidated Results

F- 2012 F- 2011 % Inc/ (Dec) Net Revenue 59,744.95 37,180.62 60.7

Mahindra & Mahindra

14 # 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 & Mahindra

15 # 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 & Mahindra

16 # 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 Limited 643.50 492.77 30.6

Mahindra & Mahindra

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PAT is on consolidated basis post minority interests

Services Limited 643.50 492.77 30.6 Mahindra Lifespace Limited 119.08 108.20 10.1 Mahindra Holidays & Resorts India Limited 102.34 100.30 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 Crores

Gross Revenue & Other Income

CAGR 27.3%

Mahindra & Mahindra

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13,329 5,000 10,000 15,000 F-2008 F-2009 F-2010 F-2011 F-2012 R Year

Trend in Profits – M&M + MVML

2,997 2,000 2,500 3,000 3,500 Rs Crores

Profit After Tax

CAGR 28.4%

Mahindra & Mahindra

20

1,103 500 1,000 1,500 2,000 F-2008 F-2009 F-2010 F-2011 F-2012 Rs Year

M&M Group Trend in Revenue (Excl. Ssangyong)

51,105 40,000 45,000 50,000 55,000 rores

Gross Revenue & Other Income (without Ssangyong)

CAGR 17.6%

Mahindra & Mahindra

21

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 Year

M&M Group Trend in PAT (after MI) (Excl. Ssangyong)

3,521.84 2,506.00 3,006.00 3,506.00 4,006.00 PM (%)

Profit After Tax (after MI) (without Ssangyong)

CAGR 22.4%

Mahindra & Mahindra

22

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 OPM Year

Stock Performance

1st 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%

2.46 2.50 3.00

Future ready

Balance sheet strength

24 Stronger Balance Sheet…. Debt / EBITDA Ratio

0.60 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 basis 2. Blue indicate Sensex 3. 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 leadership

position

 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

• utlook

upgrade from AA+ (negative) to AA+ (stable)

26

Mahindra & Mahindra

 Consolidation

• f stake in Swaraj Automotive Ltd &

MADPL,

 Entry to Micro irrigation – EPC Ltd  Fund

raising & debt restructuring for group companies

What drives us?

Mahindra & Mahindra

The House of Mahindra

Accepting No Limits Alternative Thinking Driving Positive Change

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

• Think big, think global
• Challenge conventional

thinking

• Pursue new approaches
• Celebrate diversity
• Step into your customer’s

shoes

CORE PURPOSE CORE 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

Sustainability

Organizational Culture

29

Mahindra & Mahindra

Good Governance “GVC Level I” by CRISIL

and you have recognized

Mahindra & Mahindra

recognized us…

Thank you

Visit our website at www.mahindra.com

Mahindra & Mahindra

Visit our website at www.mahindra.com

Mahindra & Mahindra