MAHINDRA & MAHINDRA LTD. Board’s Report 77 Dear Shareholders Your Directors present their Report together with the Audited Financial Statements of your Company for the year ended 31st March, 2025. A. FINANCIAL AND OPERATIONAL HIGHLIGHTS (Rs. in crores) Standalone Consolidated Particulars 2025 2024 2025 2024 Revenue from Operations............ 1,16,483.68 99,097.68 1,58,749.75 1,38,279.30 Income from investment related to subsidiaries, associates and joint ventures... 2,140.85 2,238.09 461.07 798.97 Income from operations................ 1,18,624.53 1,01,335.77 1,59,210.82 1,39,078.27 Other income........................................ 1,711.87 1,956.08 2,181.05 2,176.42 Total income.......................................... 1,20,336.40 1,03,291.85 1,61,391.87 1,41,254.69 Profit before Depreciation, Finance Costs, share of profit of associates and joint venture and taxation.......................................... 20,127.37 17,086.27 32,699.24 27,068.35 Less: Depreciation, Amortisation and Impairment Expenses........... 4,226.78 3,488.01 6,073.65 4,723.78 Profit before Finance Costs, Share of profit of associates and joint venture and Taxation. 15,900.59 13,598.26 26,625.59 22,344.57 Less: Finance Costs ......................... 250.47 140.48 9,083.39 7,488.21 Profit before Share of profit of associates and joint venture and Taxation.......................................... 15,650.12 13,457.78 17,542.20 14,856.36 Add: Share of profit of associates and joint venture...... - - 1,537.42 1,121.43 Profit before Taxation..................... 15,650.12 13,457.78 19,079.62 15,977.79 Less: Tax Expense.............................. 3,795.16 2,815.49 5,006.45 3,707.97 Profit for the year............................. 11,854.96 10,642.29 14,073.17 12,269.82 Profit/(Loss) for the year attributable to : - Owners of the Company ......... 11,854.96 10,642.29 12,929.10 11,268.64 - Non-Controlling Interest............ - - 1,144.07 1,001.18 Balance of profit for earlier years........................................................... 46,400.46 37,644.47 57,717.86 48,187.61 Profits available for appropriation......................................... 58,255.42 48,286.76 70,646.96 59,456.25 Less: Dividend Paid on Equity Shares........................................................ (2,623.85) (2,020.94) (2,352.78) (1,810.14) Add/(Less): Other adjustment to retained earnings $..................... (62.20) 134.64 (286.29) 71.75 Balance carried forward............... 55,569.37 46,400.46 68,007.89 57,717.86 $ 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. FY25 has been an eventful year that witnessed nearly half of global population being part of electoral activity amidst adverse geopolitical scenarios and global financial markets subject to increased volatility driven by regional instability, geopolitical risks and policy uncertainty. Nonetheless, global economic growth has remained moderate with 2024 growth projected at 3.2% by the International Monetary Fund (“IMF”). Easing of inflationary pressures and service sector growth have been key contributors towards a steady performance. Growth has been varied across different economies with US witnessing solid domestic demand growth while major economies in Europe (France, Germany, etc.) facing contraction. Ongoing geopolitical conflicts and trade policy risks are likely to pose challenges to economic stability and growth. Compared to the global context, India’s economic growth has remained robust with first advance estimates of national accounts projecting 6.4% real GDP growth in FY25. Strong agricultural output and a resilient services sector have been key contributors to India’s growth. PFCE (Private Final Consumption Expenditure) is expected to grow at 8.3% in FY25 and thereby account for 61.8% of FY25 GDP, its highest share since FY03. This has been driven by rural demand supported by a good Kharif harvest and favourable agricultural conditions. Nearly 80% of rural households reported an increase in their consumption expenditure. Robust sales of 2-wheelers and 3-wheelers, along with tractors, are further indicators of a rise in rural consumption. Urban demand, which slowed down in the 1st half of FY25, started showing signs of recovery with 5% growth in Q3FY25, nearly double the 2.6% of the previous quarter. Retail inflation moderated from 5.4% in FY24 to 3.35% at end of FY25. Food inflation also narrowed down significantly in 2nd half of the year from ~10% in October 2024 to 2.69% in March 2025 – lowest since November 2021. With inflation now at its lowest since 2018–19, India has been able to reinforce macroeconomic stability and create an enabling environment for sustainable growth. With demand stimulus in the Budget and RBI monetary policy measures to increase liquidity in the economy, the India consumption story is expected to remain strong. BOARD’S REPORT
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