Q4 M&M + MVML Revenue Rs. 12289 crore

Q4 M&M + MVML PAT after (EI) Rs. 874 crore

Mumbai, 30th May 2017: The Board of Directors of Mahindra and Mahindra Limited today announced the financial results for the quarter ended 31st March 2017 of the company and the audited results for the year ended 31st March 2017 for the company and the consolidated Mahindra Group. The results are being published under the new Indian Accounting Standard (IND AS) which became applicable from 1st April 2016.

Q4 F2017 – M&M + MVML* Results

– Gross Revenues and Other Income Rs. 12289 crore, a YOY increase of 5.2%
– Profit before tax before Exceptional items Rs. 1085 crore, a YOY increase of 13.1%
– Profit after tax before Exceptional items Rs. 780 crore, a YOY increase of 13.8%
– Profit before tax after Exceptional item Rs. 1179 crore, a YOY increase of 22.1%
– Profit after tax after Exceptional item Rs. 874 crore, a YOY increase of 26.3%
– 130778 vehicles sold in domestic market, flat on a YOY basis
– 46583 tractors sold in the domestic market, a YoY growth of 13.3%
– Total exports of 10831 numbers (7269 vehicles & 3562 tractors)

For Q4 F2017, the auto industry was quick to recover from the impact of demonetization. Most segments of the industry showed resilience after a dip in Q3 F2017. However, the continued lag in the LCV<2T, 3 wheelers and 2 wheelers is an indication of a slower recovery in rural parts of the country.

The Hon'ble Supreme Court on March 29, 2017, passed Orders that on and from April 1, 2017 non BS-IV compliant vehicles would not be permitted to be sold in India by any manufacturer or dealer, and prohibited vehicle registering authorities from registering such vehicles. The financial statements have recognized an impact of Rs. 171 crore arising from the above

In Q4 F2017 the tractor industry posted partial recovery post demonetization, registering a growth of 13%. Tractor demand picked up in March owing to the festive demand and the positive momentum created by good crop production in the rabi season. Expectation of good monsoons, higher rural incomes and, a government thrust in agricultural and rural sectors is likely to push tractor demand up in Q1 F2018 by driving positive sentiment in the larger rural economy.

Q4 F2017 – M&M Standalone results

– Gross Revenues and Other Income Rs. 12320 crore
– Profit after tax before Exceptional items Rs.631 crore, a YOY increase of 5.5%
– Profit after tax after Exceptional items Rs. 725 crore, a YOY increase of 19.9%

F2017 – M&M + MVML Results

– Gross Revenues and Other Income Rs. 48125 crore, a YOY increase of 9.5%
– Profit before tax before Exceptional items Rs. 5158 crore, a YOY increase of 13.1%
– Profit after tax before Exceptional items Rs. 3706 crore, a YOY increase of 11%
– Profit before tax after Exceptional items Rs. 5360 crore, a YOY increase of 17.4%
– Profit after tax after Exceptional items Rs. 3889 crore, a YOY increase of 16.3%

F2017 – M&M Standalone results

– Gross Revenues and Other Income Rs. 48439 crore, a YOY increase of 8.9%
– Profit after tax before Exceptional items Rs. 3426 crore, a YOY increase of 9.2%
– Profit after tax after Exceptional items Rs. 3956 crore, a YOY increase of 23.4%

The Board of Directors has recommended a dividend of Rs. 13.00 (260%) per share of face value Rs. 5.00 (previous year Rs. 12.00 (240%) per share of face value Rs.5.00 each) and will be paid to those shareholders whose names stand registered in the books of the company as on the book closure date.

F2017 – Group Consolidated Results

– Gross Revenues and Other Income Rs.89713 crore (USD 13.4 Billion), a YOY increase of 10.8 %
– Profit before tax Rs.6350 crore (USD 947.3 million ), a YOY increase of 12.0 %
– Profit after tax after Non-Controlling Interest Rs. 3698 crore (USD 551.7 million) , a YOY increase of 17.5 %

A full summation of Gross Revenues and other income of all the group companies taken together for the whole year F2017 is Rs.127233 crore (USD 19.0 billion).

Outlook:

The outlook for 2017-18 is much more robust with a favourable domestic and global backdrop. On the domestic front, the economy is set to experience a growth recovery and while the RBI expects GVA to grow at 7.4% YoY in FY 18 with some favourable tailwinds, the recent revamp of the IIP and WPI series may well propel it higher towards 8%. Monsoon is forecast to be normal for the second consecutive year which bodes very well for demand recovery. Moreover, the ongoing remonetisation process and lagged effect of past rate cuts along with a further reduction in banks’ lending rates will aid discretionary consumer spending and growth recovery. Focussed expenditure, especially on the rural economy and affordable housing, roll-out of GST and steps to attract higher foreign direct investment (FDI) will also be supportive of growth. Importantly, notwithstanding initial challenges, GST implementation entails sustained positive gains for the economy in the long term. On the global front too, demand backdrop is expected to be favourable with most forecasts pegging global output and trade higher in 2017 and 2018 as compared to the recent past.

Note: Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 31st March 2017.

About Mahindra

The Mahindra Group is a USD 17.8 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:
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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