analyst ppt f12

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


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


* 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


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


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


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


# 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



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



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


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%


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%


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%


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%


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

analyst ppt f12

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