MAHINDRA & MAHINDRA LTD. Standalone Accounts 317 35. Earning Per Share (EPS) Rupees crores Particulars 2025 2024 Profit for the year for basic EPS (Rupees crores).................................................................................................................................................. 11,854.96 10,642.29 Profit for the year diluted EPS (Rupees crores)...................................................................................................................................................... 11,854.96 10,642.29 Weighted average number of Ordinary (Equity) Shares used in computing basic EPS................................................................ 1,19,99,40,627 1,19,86,36,292 Effect of dilutive potential Ordinary (Equity) Shares............................................................................................................................................ 42,53,965 45,93,003 Weighted average number of Ordinary (Equity) Shares used in computing diluted EPS............................................................ 1,20,41,94,592 1,20,32,29,295 Basic Earnings per share (Rs.) (Face value of Rs. 5 per share)..................................................................................................................... 98.80 88.79 Diluted Earnings per share (Rs.).......................................................................................................................................................................................... 98.45 88.45 36. Employee Benefits (a) General description of defined benefit plans: (i) Gratuity The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund. (ii) Post - retirement medical The Company provides post retirement medical cover to select grade of employees to cover the retiring employee and their spouse upto a specified age through mediclaim policy on which the premiums are paid by the Company. The eligibility of the employee for the benefit as well as the amount of medical cover purchased is determined by the grade of the employee at the time of retirement. (iii) Post - retirement housing allowance The Company operates a post retirement benefit scheme for a certain grade of employees in which a monthly allowance determined on the basis of the last drawn basic salary at the time of retirement, is paid to the retiring employee in lieu of housing. (b) Risk exposure Though its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below: (i) Asset volatility The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan assets underperform compared to this yield, this will create or increase a deficit. The defined benefit plans may hold equity type assets, which may carry volatility and associated risk. (ii) Changes in bond yields A decrease in government bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of the plan’s investment in debt instruments. (iii) Inflation risk The present value of some of the defined benefit plan obligations are calculated with reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. The post retirement medical benefit obligation is sensitive to medical inflation and accordingly, an increase in medical inflation rate would increase the plan’s liability. (iv) Life expectancy The present value of defined benefit plan obligation is calculated by reference to the best estimate of the mortality of plan participants, both during and after the employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
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