MAHINDRA & MAHINDRA LTD. Board’s Report 81 Additionally, your Company remained committed to efficient cash management, ensuring sufficient liquidity and access to backup lines of credit. During the year, your Company repaid short term trade finance of Rs. 350 crores and long‑term borrowings of Rs. 100 crores whilst maintaining a high liquidity level of Rs. 23,905 crores as of 31st March, 2025. Further, your Company has been rated by CRISIL Ratings Limited (“CRISIL”), ICRA Limited (“ICRA”), India Ratings and Research Private Limited (“India Ratings”) and CARE Ratings Limited (“CARE”) for its Banking facilities. All have re-affirmed the highest credit rating for your Company’s Short-Term facilities. For Long Term facilities and Non-Convertible Debentures, CRISIL, ICRA, CARE and India Ratings have re-affirmed their credit ratings of CRISIL AAA/Stable, [ICRA]AAA (stable), CARE AAA; Stable, and IND AAA/Stable for the respective facilities rated by them. With the above rating affirmations, your Company continues to enjoy the highest level of rating from all Major Rating Agencies at the same time. The AAA ratings indicate highest degree of safety regarding timely servicing of financial obligations and is also a vote of confidence reposed in your Company’s Management by the rating agencies. It is an acknowledgement of the strong credit profile of your Company over the years, resilience in earnings despite cyclical upturns/downturns, robust financial flexibility arising from the significant market value of its holdings and prudent management. Your Company is a “Large Corporate” as per the criteria under Securities and Exchange Board of India (“SEBI”) Master Circular No. SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated 22nd May, 2024, as amended from time to time. The Company has complied with the provisions of the said Circular and has made requisite disclosures in this regard. Investor Relations (IR) Your Company remains committed to fostering trust and transparency with investors and analysts, adhering to global best practices in Investor Relations. In FY25, your Company actively engaged with over 1,000 domestic and global investors and analysts through conferences, individual and group interactions, both in-person and virtual settings (excluding quarterly earnings calls, analyst meets and specific event related meets). All events hosted in FY25 including quarterly earnings calls, analyst meets, product launch events, etc. were well attended by investors and analysts. Senior management, including the Group CEO and Managing Director, Executive Director and CEO (Auto and Farm Sector), Group CFO and Head – Group Corporate Finance, IR & Treasury played a pivotal role in addressing investor queries and sharing insights on strategic priorities, including: ● Capital allocation framework. ● Leveraging on market leadership in Auto and Farm business. ● Turnaround of Mahindra Finance and Tech Mahindra. ● Scaling of the Growth Gems. ● ESG undertakings. A major milestone in FY25 was the inaugural Group Investor Day, attended by over 200 investors and analysts, reflecting strong interest and confidence in your Company’s vision and performance. Other key events, which were met with very enthusiastic participation, included: ● Tour of Mahindra Research Valley (flagship R&D and innovation center). ● Product launches such as Thar ROXX and Battery Electric Vehicles (BEVs). Your Company ensures critical information remains readily accessible to investors through timely updates on the Company’s website. Dividend As per the Dividend Distribution Policy, dividend payout would have to be determined based on available financial resources, investment requirements and taking into account optimal shareholder return. Within these parameters, the Company would endeavour to maintain a total dividend pay-out ratio in the range of 20% to 35% of the annual standalone Profits after Tax (PAT) of the Company. Your Directors, considering the good performance and a strong cash flow, decided to recommend a Dividend of Rs. 25.30 (506%) per Ordinary (Equity) Share of the face value of Rs. 5 each, out of the Profits for the Financial Year ended 31st March, 2025. The Equity Dividend Outgo for the FY25 would absorb a sum of Rs. 3,146.13 crores resulting in a payout of 26.54% of the standalone net profit of the Company for the FY25 [as against Rs. 2,623.85 crores comprising the dividend of Rs. 21.10 per Ordinary (Equity) Share of the face value of Rs. 5 each resulting in a payout of 24.48% for the previous year]. Dividend will be payable subject to approval of Shareholders at the ensuing Annual General Meeting and deduction of tax at source to those Shareholders whose names appear in the Register of Members as on the Record Date / Book Closure Date. The Board of your Company decided not to transfer any amount to the General Reserve for the year under review.
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