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

49 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 Dear Shareholders Your Directors present their Report together with the audited financial statements of your Company for the year ended 31 st March, 2022. A. FINANCIAL AND OPERATIONAL HIGHLIGHTS (Rs. in crores) Particulars 2022 2021 Revenue from Operations. ............................. 57,446 44,630 Other Income................................................... 2,076 1,199 Profit before Depreciation, Finance Costs, Exceptional items and Taxation..................... 9,118 8,157 Less: Depreciation, Amortisation and Impairment Expenses ............................ 2,451 2,370 Profit before Finance Costs, Exceptional items and Taxation.......................................... 6,667 5,787 Less: Finance Costs........................................... 223 396 Profit before Exceptional items and Taxation... 6,444 5,391 Add: Exceptional items................................... (209) (3,087) Profit before Taxation..................................... 6,235 2,304 Less: Tax Expense............................................. 1,300 1,320 Profit for the year........................................... 4,935 984 Balance of profit for earlier years................. 29,464 29,102 Less: Transfer to Retained Earnings............... — (20) Profits available for appropriation................ 34,399 30,106 Add: Due to Scheme of Arrangement. ......... — (294) Add: Other Comprehensive Income/(Loss)*. . 102 (56) Less: Dividend paid on Equity Shares............ 1,088 292 Balance carried forward. ................................ 33,413 29,464 * Remeasurement of (loss)/gain (net) on defined benefit plans, recognised as part of retained earnings. The Financial Year 2022 will go down in India’s economic history as an unprecedented one with huge gyrations in fortune. The second wave of the pandemic hit lives hard and was way more vicious than the first one. Yet, it was not about Covid in spite of the second wave, it was more about hope and recovery as India successfully navigated its course through turbulent waters. As the wave receded, there was a dramatic surge in the pace of vaccination and India was able to vaccinate most of its eligible population rapidly. Concomitantly, there was Board’s Report a rebound in growth as evidenced from high frequency indicators. However, the enthusiasm was disrupted by the third wave of the pandemic which fortunately proved to be less vicious and short lived. The Union Budget doubled down on the investment- oriented strategy focussing on capital expenditure to kickstart a “virtuous cycle of investment” while crowding in private investments. However, by the end of February, global risk-off sentiments gathered steam and geopolitical risks came to the fore from the war in Ukraine. The return of uncertainty clouded the global macroeconomic and financial landscape even as the global economy struggled to recover from the pandemic. The Indian economy is estimated to have grown by 8.9% during the Financial Year 2022 aided by a favourable base but the economic recovery across the Sectors was uneven. Private consumption and fixed investment – key drivers of domestic demand remained subdued being only 1.2% and 2.6% respectively, above their pre-pandemic levels. The Profit for the year before Depreciation, Finance Costs, Exceptional items and Taxation recorded an increase of 11.8% at Rs. 9,118 crores as against Rs. 8,157 crores in the previous year. Profit after tax increased by 401.5% at Rs. 4,935 crores as against Rs. 984 crores in the previous year. Your Company continues with its rigorous cost restructuring exercises and efficiency improvements which have resulted in significant savings through continued focus on cost controls, process efficiencies and product innovations that exceed customer expectations in all areas thereby enabling the Company to maintain profitable growth in the current economic scenario. Details of Material Changes from the end of the Financial Year till the date of this Report No material changes and commitments have occurred after the closure of the Financial Year 2021-22 till the date of this Report, which would affect the financial position of your Company.