Q1 F2019 – M&M + MVML Results

Q1 M&M + MVML Revenue at Rs. 13,358 crores up by 23%
Q1 M&M + MVML PAT (after EI) at Rs. 1,257 crores up by 67%

Mumbai, August 7, 2018: The Board of Directors of Mahindra & Mahindra Limited today announced the unaudited financial results for the quarter ended 30th June 2018 for the Company.

Q1 F2019 – M&M + MVML Results Rs. crores
  Q1 F2019 Q1 F2018 Growth % YoY
Revenues and Other Income 13,551 11,006 23%
Profit from ordinary activities Before Tax (before EI) 1,830 1,130 62%
Profit from ordinary activities After Tax (before EI) 1,238 752 65%
Profit from ordinary activities After Tax (after EI) 1,257 752 67%
Operating margin (OPM) 15.8% 13.2%  
       
Vehicles sold (Nos) 1,30,484 1,12,293 16%
Tractors sold (Nos) 96,527 81,270 19%
Exports (vehicles and tractors) (Nos) 12,730 8,031 59%
The combined results of M&M and MVML (manufacturing unit) provide a comprehensive view of the Company’s performance.
(Tractors which were earlier exempt from excise duty are now subject to GST. To make the figures comparable, the numbers for Q1 F2018 with respect to revenue and material cost for tractors have been restated as if the current GST regime had been applicable earlier).

For Q1 F2019, the Indian automotive industry (excluding two wheelers) grew 28.4% with passenger vehicles growing by 19.9% and the commercial vehicle industry growing by 51.5%. The domestic tractor industry witnessed a growth of 23.4% in Q1 F2019. The demand for both automobiles and tractors was driven by positive sentiment in the economy (both urban and rural) due to a third consecutive year of a normal monsoon, sustained investment in road & infra projects and availability of affordable finance. However, for the automotive industry, the exceptionally high growth numbers are due to the low base effect. In Q1 F2018 the industry volumes for passenger vehicles was on the lower side due to the slowdown in demand preceding the implementation of GST in July 2017 and commercial vehicle volumes being adversely impacted due to supply constraints arising from implementation of BS IV norms.

In Q1 F2019, the total domestic automotive volume for the Company grew by 16.2%. The HCV volume grew 123.4% resulting in a market share of 5.7%. The Company exported 9,360 vehicles during the current quarter, a growth of 100.2% over the corresponding quarter previous year. The Company’s domestic tractor sales grew by 18.8% in Q1 F2019 and the Farm Equipment Segment’s revenue and results crossed the landmark numbers of Rs. 5,000 crores and Rs 1,000 crore respectively.

Outlook

Consumption, both rural and urban, remains healthy. A normal monsoon, with a satisfactory temporal and spatial distribution, combined with the recently approved higher MSP for kharif crops should help support rural consumption further. Improving capacity utilisation and credit offtake too augur well for investment activity. While RBI’s GDP growth forecast for 2018-19 has been retained at 7.4 per cent, growth is estimated to be more front-ended. Global growth backdrop has remained buoyant so far. However, the recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions. These could pose risks to global recovery and investments.

Q1 F2019 – M&M Standalone results Rs. crores
  Q1 F2019 Q1 F2018 Growth % YoY
Revenues and Other Income 13,785 12,580 10%
Profit from ordinary activities After Tax (after EI) 1,221 749 63%

Group Consolidated Results

The Board meeting to approve the Q1 F2019 results is yet to be held by one listed subsidiary of the Company. After the approval and announcement of the results by the subsidiary, the Company will separately release the information on Consolidated Group Turnover and PAT.

About Mahindra

The Mahindra Group is a USD 20.7 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 enjoys 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, aerospace, commercial vehicles, components, defense, logistics, real estate, renewable energy, speedboats and steel, amongst other businesses. Headquartered in India, Mahindra employs over 2,40,000 people across 100 countries.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise

Media contact information:

Mohan Nair
Vice President (Communications)
Mahindra & Mahindra Ltd.
Office Direct Line – + 91 22 28468510
Office Email Address – nair.mohan@mahindra.com

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