M&M MVML Revenue Rs. 12,049 crore – up 18%

Mumbai, November 11, 2016: The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results of the company for the quarter ended 30th September, 2016. The results are being published under the new Indian Accounting Standard (IND AS) which became applicable from 1st April 2016.

Q2 F2017 – M&M + MVML* Results

– Gross Revenues and Other Income Rs. 12,049 crore, up 18% YoY
– Profit from ordinary activities before tax Rs. 1,740 crore, up 34% YoY
– Profit from ordinary activities after tax Rs. 1,253 crore, up 29% YoY
– 114,795 vehicles sold, a YoY growth of 11.6%
– 52,287 utility vehicles sold, a YoY growth of 15.6%
– 57,863 tractors sold in the domestic market, a YoY growth of 36.9%
– Total exports of 15,181 numbers (11,385 vehicles & 3,796 tractors), a YoY growth of 13.3%

Q2 F2017 – M&M Standalone results

– Gross Revenues and Other Income Rs. 12,071 crore, up 17% YoY
– Profit from ordinary activities after tax Rs. 1,163 crore, up 27% YoY

H1 F-2017 – M&M + MVML Results

– Gross Revenues and Other Income Rs. 24,010 crore, up 16% YoY
– Profit from ordinary activities before tax Rs. 3,058 crore, up 25% YoY
– Profit from ordinary activities after tax Rs. 2,215 crore, up 23% YoY

H1 F-2017 – M&M Standalone results

– Gross Revenues and Other Income Rs. 24,231 crore, up 16% YoYY
– Profit from ordinary activities after tax Rs. 2,118 crore, up 20% YoY

Outlook:

India’s macro economic story is slowly but surely taking shape although data on industrial production and slow trade growth continued to act as ceilings to India’s growth. The IMF avers that in the current – and projected – global scenario, India will continue to standout with the fastest growth rate. And this prognosis is not without reason. After two years of sub-par rainfall, this year's monsoon has been abundant and well spread which will help revive farm income and push up private consumption.

The first advance estimates released by the agriculture ministry for Kharif crops this year suggests a record output, higher by 9%. Higher soil moisture due to the good monsoon also augurs well for the Rabi crop.

Higher crop output will help improve spends on agri-inputs and services. Moreover, prices of key agricultural inputs have stabilized which signal that farmer balance sheets are on the mend now and this will help revive the overall rural economy.

Importantly, there is discernible traction on reforms including GST which augurs well for India’s growth trajectory. Moreover, there are signs of demand recovery manifesting through broader consumption pick-up in growth rates in automobile sales, air passenger traffic and retail loans.

The Seventh Pay Commission and the OROP scheme award has put money in the pockets of government employees and pensioners which will further help demand. The lag effects of interest rate cuts by the RBI along with the increased transmission of lower interest rates will also be supportive of consumption. All of these bode well for broad-based consumption led growth in the coming quarters.

About Mahindra

The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.

A USD 17.8 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.

In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.

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Media contact information:
Mohan Nair
Vice President (Communications)
Automotive & Farm Equipment Sectors
Office Direct Line – + 91 22 28468510
Office Email Address – nair.mohan@mahindra.com

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