MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 17 With the reduction in losses from our overseas subsidiaries, strong capital allocation discipline, robust cost control across all our businesses and the healthy performance of our businesses, we have been able to achieve 18% ROE (Consoli- dated) for three consecutive quarters starting Q2F22. As a result, the ROE (Consolidated) increased from 4.4% in F21 to 14.8% in F22. 7 consecutive quarters of Positive EBIT for Global Farm subsidiaries. The actions taken on Category C businesses along with a focus on improving the performance of businesses in Category A and B have resulted in significant reduction in losses from international auto and farm subsidiaries. All the overseas farm sector subsidiaries have delivered positive EBIT for seven consecutive quarters. REIGNITED VALUE CREATION We also undertook several steps to accelerate growth in our Core businesses (Auto, Farm, Financial Services and IT Services), Growth Gems and Investments, which have started delivering results. PAT: Loss-making Entities* (3,429) (2,358) F20 F21 F22 (191) International Auto and Farm operations ( J Cr) *Consolidated M&M PAT before EI after NCI F22: CONSOLIDATED PAT* J Cr Growth Gems Investments *Consolidated PAT before EI after NCI Core Multiple new projects/wins in Real Estate, Logistics, Defence Leverage growth opportunities in REN, Accelo, Aerospace F21 F22 45 280 ++ Digital platforms of Porter, Brainbees and CarandBike with multifold growth Portfolio optimisation and capital allocation (189) 105 F21 F22 ++ TechM and MMFSL TechM Order wins $3.3Bn, é utilisation, é attrition MMFSL GNPA ê , focus on transformation 1,584 2,197 F21 F22 39% Auto and Farm 3,170 3,654 F21 F22 15% Auto Strong demand, volatile supply environment Farm 2nd best year in volume, é commodity prices