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

54 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 Dear Shareholders Your Directors present their Report together with the audited financial statements of your Company for the year ended 31 st March, 2023. A. FINANCIAL AND OPERATIONAL HIGHLIGHTS (Rs. in crores) Standalone Consolidated Particulars 2023 2022 2023 2022 Revenue from Operations ............ 84,960.26 57,786.94 1,21,268.55 90,170.57 Other Income ........................................ 2,545.17 2,053.75 1,206.49 934.51 Profit before Depreciation, Finance Costs, Exceptional items, Share of profit of associates and joint ventures and Taxation .......................................... 12,987.56 9,081.22 21,491.78 15,617.36 Less: Depreciation, Amortisation and Impairment Expenses ................................... 3,154.46 2,498.39 4,356.81 3,507.50 Profit before Finance Costs, Exceptional items, Share of profit of associates and joint ventures and Taxation .................... 9,833.10 6,582.83 17,134.97 12,109.86 Less: Finance Costs ........................... 272.78 226.18 5,829.70 5,018.05 Profit Before Exceptional Items, Share of profit of associates and joint ventures and Taxation .................................................... 9,560.32 6,356.65 11,305.27 7,091.81 Add: Share of profit of associates and joint ventures.. – – 1,505.44 1,855.79 Profit Before Exceptional Items and Taxation ................................................. 9,560.32 6,356.65 12,810.71 8,947.60 Add: Exceptional items ................... (1,429.54) (208.67) 1,249.52 414.17 Profit before Taxation ..................... 8,130.78 6,147.98 14,060.23 9,361.77 Less: Tax Expense .............................. 1,582.14 1,278.10 2,685.75 2,108.76 Profit for the year ............................. 6,548.64 4,869.88 11,374.48 7,253.01 Profit / (Loss) for the year attributable to: - Owners of the company ............ 6,548.64 4,869.88 10,281.50 6,577.32 - Non-controlling interests .......... – – 1,092.98 675.69 Balance of profit for earlier years ........................................................... 32,450.64 29,463.69 39,174.21 33,667.96 Profits available for appropriation......................................... 38,999.28 34,333.57 49,455.71 40,245.28 Less: Dividend paid on Equity Shares ...................................................... 1,435.89 1,087.79 1,284.77 979.17 Add: Due to Scheme of Arrangement ......................................... – (847.27) – – Add: Other adjustments to Retained earnings $ ............................ (85.36) 52.13 16.67 (91.90) Balance carried forward ............... 37,478.03 32,450.64 48,187.61 39,174.21 $ For details refer to ‘Statement of Changes in Equity’ in the Standalone Financial Statements and ‘Consolidated Statement of Changes in Equity’ in the Consolidated Financial Statements respectively forming part of the Annual Report. The Financial Year 2023 was a year of uncertainty, recovery and economic resilience for India. Even as India looked beyond the pandemic, elevated uncertainty due to geopolitical tensions and a war in Ukraine set the tone even before the fiscal year started. The war resulted in higher global supply-chain-related disruptions and fuelled global inflationary forces, which seeped into the domestic consumption basket. Oil breached USD 120 / barrel of crude oil mark, and industrial metal prices soared in the first quarter. Higher inflation forced major central banks to firefight inflation with an ultra-hawkish policy stance. While the faster-than-normal pace of monetary policy tightening resulted in the peaking of inflationary forces, it also raised headwinds to global growth. A stronger dollar resulting from US Federal Reserve’s policy tightening and higher commodity prices accentuated external difficulties for emerging economies including India. The RBI also hiked rates aggressively to combat domestic inflationary pressures in line with the global monetary policy cycle. Global growth lost momentum as monetary policy actions tightened financial conditions and consumer confidence weakened with the rising cost of livelihood. Inflation remained elevated and persistent across countries as they grappled with food and energy price shocks and shortages. Yet, India’s economic resilience stands out with the first advance estimates (FAE) released by the National Statistical Office (NSO), placing India’s real gross domestic product (GDP) growth at 7% year-on-year (y-o-y) for FY23, driven by private consumption and investment. The Profit for the year before Depreciation, Finance Costs, Exceptional items and Taxation recorded an increase of 43.01% at Rs. 12,987.56 crores as against Rs. 9,081.22 crores in the previous year. Profit after tax increased by 34.47% at Rs. 6,548.64 crores as against Rs. 4,869.88 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 . BOARD’S REPORT