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MAHINDRA & MAHINDRA LTD. - 500520 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome

 We wish to inform you that the Company today virtually participated in Morgan Stanley Virtual Investor Conference with Several Funds/Investors and the Presentation(s) which was sent to the Stock Exchanges vide letter bearing REF:NS:SEC dated 28th May, 2021 and which is available at the Weblink: https://www.mahindra.com/resources/investor-reports/FY22/Announcements/MMAnnual- Analyst-Meet-2021-Presentations-deck-28th-May-2021.pdf was shared with them.
09-06-2021

M&M is looking ahead, but near-term speed bumps may slow things down

 Mahindra & Mahindra (M&M;) reported a mixed set of numbers for the March 2021 quarter. While revenue and operating profit came in at robust double digits, the bottomline was impacted by exceptional items in Q4FY21. The company drove FY21 numbers with robust sales volumes in its farm equipment sector (FES) vertical throughout the year. M&M;, the flagship company of the Mahindra Group, offers a wide array of products ranging from SUVs to electric vehicles, pickups, commercial vehicles, tractors, two-wheelers and construction equipment. M&M; stock price rose 2% after Q4 results were announced. Quick Takes: Management sees near term risk in the form of semiconductor shortage, rising commodity prices and localized lockdowns For the first time, M&M; launched all variants - petrol, diesel, manual, automatic together for its Thar SUV M&M; plans to launch 23 new models in the next five years in the automotive segment - 9 in utility vehicles (UV) and 14 in light commercial vehicles (LCV) Capital expenditure (capex) outlay of Rs 12,000 crore for FY22 to FY24 along with investments of Rs 1,500 crore in subsidiaries, and ambitious spending for electric vehicle platforms The company is looking for revenue growth at a CAGR of 15-20% for its FES and auto business in the next five years March 2021 quarter hit by exceptional items Combined revenues of M&M; and Mahindra Vehicle Manufacturers (MVML) were at Rs 13,338 crore in the March 2021 quarter compared to Rs 9,005 crore a year ago. Revenues rose 48% YoY driven by robust demand in both automotive and farm equipment sector. Earnings before interest, tax, depreciation and amortization (EBITDA) was at Rs 1,960 crore up 60% YoY aided by price hikes and higher cost efficiencies. The company reduced fixed expenses of Rs 900 crore over the past three years. Profit after tax (PAT) before exceptional items (EI) was Rs 1,003 crore in Q4FY21 vs Rs 323 crore, a year ago. PAT after exceptional items came in at Rs 163 crore in March 2021 quarter compared to net loss of Rs 3,255 crore, a year ago. Exceptional items of Rs 840 crore were charged in Q4FY21 pertaining to impairment provisions for certain long-term assets and other exposures. M&M; is getting its house in order M&M; battled through tough times from 2018 till 2020. The company’s performance was impacted by increasing losses in some of its international subsidiaries (auto & FES) and a slowdown in the domestic economy. Auto sector was impacted as cars, SUVs, and two-wheeler growth reported consistent deceleration. Consequently, M&M;’s stock price took a hit, falling from Rs 1,000 levels in August 2018 to Rs 500 levels by December 2019. With the Covid-19 outbreak and the uncertainty that followed, M&M;’s stock fell further to Rs 280 levels by March 30, 2020. The company recalibrated its capital allocation policy, classifying its loss-making entities into three categories. Category A for companies with a clear path to 18% return on equity (ROE), category B with unclear path to profitability but quantifiable strategic impact and category C for business where M&M; will exit. For instance, M&M; exited GENZE, its electric scooter business in the US. It also exited GippsAero (a Melbourne-based aircraft company) and is looking for a potential buyer for SsangYong, its Korean SUV-manufacturing subsidiary. From significant losses of Rs 3,400 core in FY20 and Rs 2,400 crore in FY21, FY22 levels are expected to be around Rs 300 crore for international auto and farm subsidiaries. With the streamlining exercise and capital allocation efforts completed by the December quarter FY21, M&M; laid out a future course of action in its annual analyst meeting last month. These would include a higher focus on core domestic business (auto and FES), with robust capital expenditure plans and the introduction of new products and platforms for both FES and auto segment including electric vehicles (EV) in the next five years Farm equipment business is on a roll The farm equipment sector (FES) reported revenues of Rs 4,975 crore in the March 2021 quarter, up 60% YoY. The vertical constituted 37% of total revenues in Q4FY21. M&M;’s products range from tractors, harvesters, balers, rotary tillers, rice transplanters and cultivators. While its automotive business was crippled due to the lockdowns imposed across India, the FES vertical took the shortest time to recover, and saw volumes grow on a YoY basis every month since May 2020. M&M; is the largest tractor manufacturer in India with more than 40% market share. Higher volumes of tractors and other farm equipment sales throughout FY21 was on account of a normal monsoon, robust government spend in rural areas on infrastructure and various employment schemes, lower input prices and the relatively low impact of first Covid-19 wave on rural India. The farm industry grew more than 20% YoY in spite of one and half months of lockdown in FY21. In Q4 FY21, the FES vertical reported YoY growth of 50%, 24% and 122% for the months of January, February and March 2021 respectively. But with the start of FY22 seeing the Covid second wave filtering into rural India, volumes in May dropped for the industry as a whole. M&M;’s volumes were down 5% YoY while close peers like Tractors and Farm Equipment (Tafe) and Sonalika International Tractors volumes fell 32% and 10% YoY, respectively. Escorts’ tractor volumes fell 5% YoY. As April 2020 was a washout for most industries, the 454% YoY volume growth seen in April 2021 is an aberration. M&M;’s near-term outlook is positive for FES as Covid-19 cases recede and farmers are busy with pre-sowing activities before the arrival of the monsoon. Till February 2021, the management was expecting June 2021 quarter to be a robust one due to lower base of June 2020 quarter. But with severe impact on rural India and sequential volume fall in April and May 2021 by 12% for M&M;, upcoming June quarter performance will be impacted. M&M; is expecting total sales volume (FES and auto) to be lower by 15-20% sequentially in Q1FY22. For the medium term, the company expects the tractor industry to grow at a CAGR of 7-8% and aims to outpace industry growth in the next 3-5 years. Automotive vertical is waiting for a rebound Automotive revenues at Rs 8,026 crore (60% of total revenues) rose 42% YoY in the March 2021 quarter. The vertical consists of passenger vehicles (utility vehicles, cars and vans), commercial vehicles (light commercial vehicles and medium and heavy commercial vehicles) and three-wheelers. While performance of the commercial vehicle business was inconsistent throughout FY21, utility vehicles (UVs) were in better shape. Sales of UVs returned to growth from August 2020 and maintained its positive trajectory. M&M;’s market share in UVs have declined from a high of 40% in 2016 to roughly 20% now. High competitive intensity in the UV space and shift of customer preferences to compact UVs led to a fall in M&M;’s market share. M&M; launched ‘Thar’ in 2020 and has more than 55,000 bookings in place. The compact UV XUV300 is also going strong with bookings of over 6,000 per month for the past 6-7 months. Scorpio and Bolero reported a combined monthly sales of more than 10,000 units per month in Q4FY21. Though these numbers look robust and M&M; reported strong YoY volume growth in February and March 2021, the company faces tough competition in the UV space, mainly from Hyundai Creta which saw more than 7000 units being sold in May 2021. Tata’s Nexon, Kia’s Seltos and Hyundai’s Venue are other significant competitors in the compact UV space. Preparing for the electric future with Battista To withstand high competitive intensity and gain market share in the automotive segment, M&M; plans to launch 23 new models in the next five years. The UV segment will have nine new models – Scorpio, Bolero, a five-door Thar, XUV700, four more products with an electric powertrain and two pure EV products. And subsidiary Pininfarina’s much awaited Battista (electric sports car) is expected to be launched in early 2022. In addition to this, M&M; will launch 14 new products in the LCV segment over the next five years. To support this product expansion, a robust capex has also been outlined till FY24, capex for the automotive segment is earmarked to the tune of Rs 9,000 crore which includes Rs 3,000 for electric vehicles. FES capex stands at Rs 3,000 crore till FY24. In addition to this, the company will also invest Rs 1,500 crore in subsidiaries (global and domestic) in the auto and FES business. With this vast outlay, M&M; says it is getting future ready. Investors have to wait and watch.
09-06-2021
Bigul

MAHINDRA & MAHINDRA LTD. - 500520 - Announcement under Regulation 30 (LODR)-Newspaper Publication

 Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose copies of the Notice to the Ordinary (Equity) Shareholders of the Company in respect of transfer of Equity Shares of the Company, to the Investor Education and Protection Fund ("IEPF"), published on 8th June, 2021 in the following newspapers and e-newspapers pursuant to Rule 6 of the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments thereof.
09-06-2021
Bigul

Mahindra & Mahindra Ltd - 500520 - Announcement under Regulation 30 (LODR)-Newspaper Publication

 Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose copies of the Notice to the Ordinary (Equity) Shareholders of the Company in respect of transfer of Equity Shares of the Company, to the Investor Education and Protection Fund ("IEPF"), published on 8th June, 2021 in the following newspapers and e-newspapers pursuant to Rule 6 of the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and amendments thereof.
09-06-2021
Bigul

MAHINDRA & MAHINDRA LTD. - 500520 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome

 We wish to inform you that the Company today virtually participated in CEO Speaker: Morgan Stanley Virtual Investor Conference with Several Funds/Investors and the Presentation(s) which was sent to the Stock Exchanges vide letter bearing REF:NS:SEC dated 28th May, 2021 and which is available at the Weblink: https://www.mahindra.com/resources/investorreports/ FY22/Announcements/MM-Annual-Analyst-Meet-2021-Presentations-deck-28th-May- 2021.pdf was shared with them.
08-06-2021
Bigul

MAHINDRA & MAHINDRA LTD. - 500520 - Report For The Month Of May, 2021

 Please find enclosed production, sales and export figures of the Company for the month of May, 2021.
08-06-2021
Bigul

Mahindra & Mahindra Ltd - 500520 - Report For The Month Of May, 2021

 Please find enclosed production, sales and export figures of the Company for the month of May, 2021.
08-06-2021
Bigul

MAHINDRA & MAHINDRA LTD. - 500520 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation

 We wish to inform you that pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Schedule of Analyst or Institutional Investor Meeting(s) with the Company
07-06-2021
Bigul

Mahindra & Mahindra Ltd - 500520 - Announcement under Regulation 30 (LODR)-Scheme of Arrangement

 Newspaper advertisement with respect to approval of the Scheme of Merger by Absorption of Mahindra Vehicle Manufacturers Limited ('MVML' or 'Transferor Company') with Mahindra and Mahindra Limited ('M&M;' or 'Transferee Company') and their respective Shareholders by the National Company Law Tribunal, Mumbai Bench. Also enclosed is the certified copy of the said Order issued by NCLT today i.e. 4th June,2021.
04-06-2021
Bigul

Mahindra & Mahindra Ltd - 500520 - Announcement under Regulation 30 (LODR)-Scheme of Arrangement

 We refer to our letter dated 26th April, 2021, wherein we had intimated that the Hon''ble National Company Law Tribunal, Mumbai Bench (''NCLT'') had by pronouncement of its Order on 26 April, 2021, approved the Scheme of Merger by Absorption of Mahindra Vehicle Manufacturers Limited ('MVML' or 'Transferor Company') with Mahindra and Mahindra Limited ('M&M;' or 'Transferee Company') and their respective Shareholders under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with the Rules framed thereunder. Pursuant to Regulation 30 of the Listing Regulations, and clause 22 of the said Order with respect to approval of the Scheme, please find enclosed the advertisement published today (i.e. 4th June, 2021) in the Newspapers viz.- Business Standard (in English) and Navshakti (in Marathi), informing the approval of the Scheme by NCLT on 26 April, 2021. A certified copy of the said Order issued by NCLT today i.e. 4 June,2021 is enclosed
04-06-2021
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