M&M + MVML Revenue (excluding GST impact) Rs. 12577 crore
M&M + MVML PAT (excluding GST impact) Rs. 862 crore
Mumbai, 4th Aug 2017: The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 30th June, 2017 of the company and the consolidated Mahindra Group.
Q1 F2018 – M&M + MVML*
|Excluding GST||%Including GST|
|Gross Revenues and Other Income||Rs Crore||12577||12433*|
|Profit from ordinary activities before tax||Rs Crore||1298||1154*|
|Profit from ordinary activities after tax||Rs Crore||862||768*|
|Exports (vehicles and tractors)||Nos||8031|
* Due to the unavailability of input credit for certain taxes paid, as well as due to Tractors being exempt from excise duty in the earlier regime, the company to ensure minimum impact for customers, has made provision for dealer support in respect of duty paid goods lying with dealers amounting to Rs 144 crores.
Automotive Business: The automotive industry in Q1 F2018 was impacted due to the impending transition to GST from 1st July 2017 with the Passenger Vehicles sales being adversely impacted in anticipation of a price reduction due to GST and reporting a nominal growth of 4.4%. The sales of Heavy Commercial Vehicle goods segment showed a dip as a result of pre-buying of BS3 vehicles in Q4 F2017, saturation of replacement demand and production constraints of BS4 models leading to Q1 F2018 sales being the lowest in past 13 quarters.
Tractor Business: Based on a normal monsoon outlook, tractors sales continued to post growth for the months of April and May 2017. However June 2017 witnessed a de-growth of 1.7% owing to the uncertainty with regard to transition to a GST regime. Overall the domestic tractor industry witnessed a growth of 8.5% in Q1 F2018. The company however, outperformed the industry and grew 13.2% leading to the highest ever domestic tractor market share for a quarter at 45.8%.
Q1 F2018 – M&M Standalone results
|Excluding GST||%Including GST|
|Gross Revenues and Other Income||Rs Crore||12684||12540|
|Profit from ordinary activities after tax||Rs Crore||860||766|
Q1 F2018 – Group Consolidated Results
Gross Revenues and Other Income Rs.23212 crore (USD 3.5 Billion),
Profit before tax Rs.1574 crore (USD 236.5 million),
Profit after tax after Non-Controlling Interest Rs.859 crore (USD 129.0 million)
A full summation of Gross Revenues and other income of all the group companies taken together for the quarter ended 30th June 2017 is Rs. 33105 crore (USD 5.0 billion).
India’s macro-fundamentals remain robust due to sustainable growth, steady commodity prices and continuing push to the reforms drive by the government, which has just rolled out the GST - the biggest tax reform attempted in the country that will alter the landscape in due course of time.
The twin deficits remain under control and CPI inflation has fallen below the RBI’s lower bound of 2%. The monsoon has covered the whole country ahead of schedule. Cumulative seasonal rainfall and Kharif sowing has been higher than normal so far. The RBI has lowered the Repo rate in its latest policy and may ease further, if the monsoon turns out to be well spread and inflation readings remain benign.
India’s growth momentum is likely to pick up in the coming quarters with ongoing re-monetisation, further easing of interest rates and fillip to consumption demand. Your company remains geared to capitalise on these opportunities through its reach, products and focus on innovative technology.
Note: Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 30th June 2017.
Integrated Reporting for 2016-17
The Mahindra’s annual report for 2016-17 is an Integrated Report that provides a holistic view of how Mahindra creates, sustains and enhances value with regard to various types of capital – Financial, Manufactured, Intellectual, Human, Natural and Social & Relationship. Mahindra is one of the early adopters of the Integrated Report in the manufacturing industry in India. This new Integrated Report has been based on the International Integrated Reporting Council’s Framework and GRI G4 core guidelines. Please click on this link for a short video that highlights the key features of this Integrated Report- https://youtu.be/FINvGFFk7Go
Digital Annual Review
Mahindra has launched a digital version of the company’s Annual Review for 2016-17. This can be accessed from the investor section of the company website -www.mahindra.com. It is an interactive website that hosts video messages from senior Mahindra leaders, financial and other key data in downloadable form and the Annual Report which is also available in a customizable format.
The Mahindra Group is a USD 19 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It has a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company, by volume. It also enjoys a strong presence in agribusiness, components, commercial vehicles, consulting services, energy, industrial equipment, logistics, real estate, steel, aerospace, defence and two wheelers. Headquartered in India, Mahindra employs over 200,000 people across 100 countries.
Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise
Media contact information:
Vice President (Communications)
Mahindra & Mahindra Ltd.
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