MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 Following a dip in returns in F19 and F20, we embarked on a bold strategy that began with capital allocation in F21 to steer a turnaround of or exit of loss-making companies and pivoting our core and growth gem businesses to growth as can be seen in the following charts. CAPITAL ALLOCATION Turnaround In Process Exit * FY23 PAT is for continuing operations and does not include any losses of exited entities. It excludes hyperinflation accounting impact of INR 120 Cr for Turkish operations ^ International Auto & Farm operations; PAT After NCI, before EI (26)* (3,429) ^ PAT F20 F23 Loss making entities ( J Cr) TRANSFORMING OUR CORE BUSINESSES Auto Farm MMFSL TechM Actions Outcomes l 5 mega launches…Quantum leap l Regaining EV leadership; $9.1 Bn valuation UV revenue MS 13.2% Q4F20 19.6% Q4F23 l Strengthened leadership through new launches and network expansion l Farm machinery revenue growth by 40% Market share 39.4% Q4F20 40.7% Q4F23 l Leadership, Asset quality, Tech and Data l Transformation underway l Early wins in large deals l Succession plan in place l Margin transformation to commence in F24 GNPA* 8.4% Q4F20 4.5% Q4F23 * Refers to gross stage 3 delinquent contracts Transform 14 MeraKisan