Management Discussion and Analysis | 159 MAHINDRA & MAHINDRA LTD. DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSE Depreciation, amortisation and impairment expenses as a percentage of income shows marginal increase over the previous year. FINANCE COSTS The interest expense as a percentage of income has marginally increased from 0.1% in the previous year to 0.2% in the current year mainly due to unwinding of interest on contractual obligations. TAX EXPENSE The provision for current tax and deferred tax for the year ended 31st March, 2025, as a percentage to profit before tax is 24.3% and is higher than 20.9% in the previous year mainly for certain non-deductible expenses in the current year. The key financial ratios of the Company are given as below: Explanation for variation of 25% or more in Key Financial Ratio: Debt Equity Ratio (times): The debt equity ratio is at 0.02 in current year as against 0.03 in previous year primarily due to repayment of borrowings and higher profits during the current year. Particulars Debtors Turnover (times) Inventory Turnover (times) Interest Coverage Ratio (times) Current Ratio (times) Debt Equity Ratio (times) Operating Profit Margin (%) Net Profit Margin (%) Return on Equity (%) FY25 22.2 8.6 62.0 1.49 0.02 15.5% 10.0% 20.8% M&M FY24 22.6 8.0 66.3 1.37 0.03 15.0% 10.5% 22.3% CONSOLIDATED FINANCIAL POSITION OF THE M&M GROUP As on 31st March, 2025, for the purpose of consolidation as per Indian Accounting Standards (Ind AS), the Group comprised of the flagship holding company Mahindra & Mahindra Limited, 122 Subsidiaries, 22 Joint Ventures and 30 Associates. The Consolidated Income from operations is Rs. 1,59,211 crores in the current year as compared to Rs. 1,39,078 crores in the previous year, registering an increase of 14.5%. The Consolidated Profit before share of profit of associates and joint ventures and tax for the current year is Rs. 17,542 crores as compared to Rs. 14,856 crores in the previous year, registering an increase of 18.1%. The consolidated profit after tax after non-controlling interest for the year is Rs. 12,929 crores as compared to Rs. 11,269 crores in the previous year, registering an increase of 14.7%. Tech Mahindra Limited, Flagship Company in the IT Sector, reported a consolidated operating revenue of Rs. 52,988 crores in the current year as compared to Rs. 51,996 crores in the previous year, registering an increase of 1.9% (not consolidated in M&M revenue). Its consolidated profit after tax after non-controlling interests is Rs. 4,252 crores as compared to Rs. 2,358 crores in the previous year, registering an increase of 80.3%.
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