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The 72nd Annual General Meeting of Mahindra & Mahindra Ltd.

As a Banyan tree grows, it sends out aerial offshoots, for a while these are nourished by the main trunk and soon these offshoots start their own cycle of growth. Over time, one cannot distinguish the main trunk from what originally were the aerial offshoots of the primary Banyan tree.

Drawing parallels from the Banyan tree, Anand Mahindra, Executive Chairman, Mahindra Group, in his address to shareholders at the 72nd Annual General Meeting on August 7, 2018, explained how the Mahindra Group companies, once nourished by the parent company, have now flourished in their own right. He gave an overview of how the company has expanded over time, multiplied in terms of businesses that now thrive on their own and how the Mahindra Group has always adhered to its core principles for governance and compliance.

Sharing Mahindra Group’s results in terms of revenue and profit, Anand Mahindra said, “Mahindra Group’s revenue has grown over 9,500 times since its inception 62 years ago. Today it exceeds Rs. 1.33 lakh crores. While the aggregate market capitalization of companies listed in India has grown 10,000 times during this period, the Mahindra Group’s aggregate market capitalization has grown 200,000 times, and it is now more than Rs. 2 lakh crores. Our profit after tax is up 17.8% and the directors declared a dividend of 150%.”

The Mahindra Group has permeated into rural and urban markets, registering a significant presence in all segments with business interests ranging from agriculture to automotive, real estate to retail, defense to logistics, hospitality to solar power and IT to FinTech.

Further drawing from the metaphor of the Banyan tree, Executive Chairman Anand Mahindra explained how the Mahindra Group has grown in every aspect, “Now the tree grows in other ways too. As it spreads, it grows geographically. We have globally expanded not only our manufacturing assets, but our intellectual assets as well. Our Banyan tree has grown and spread so wide that today global revenue accounts for more than 49% of the group’s turnover.”

Sustainability has always been a core value for the Mahindra Group; it has acted as a filter to decide on the viability of a business. This act of giving back to the planet through green businesses has also reaped dividends. Anand Mahindra explains, “We see these businesses as our foothold into the future. The revenue from our green businesses: clean energy, electric vehicles, micro irrigation, green housing and recycling is now upwards of USD 400 million. And we are optimistic that this number is going to grow.”

Business
Q1 2018 Results –
M&M Group Excels

Driven by the shared purpose of empowering everyone along the way, the Q1 2018 financial results of the Mahindra Group companies reflect a significant growth in performance.

M&M and Mahindra Vehicle Manufacturers (MVML)

  • Revenue at Rs. 13,358 crores, up by 23%
  • PAT (after EI) at Rs. 1,257 crores, up by 67%

The Mahindra & Mahindra journey began in 1945 as a steel company. Today it is a USD 20.7 billion global federation of companies, operating in 20 key industries. From our popular rugged and reliable automobiles, lifestyle four and two-wheelers, to innovative IT solutions, holidays, and homes, and a commitment to rural prosperity, M&M’s insightful and ingenious solutions cover every aspect of humanity. Here is a glimpse of the key performance of some of our group companies.

Tech Mahindra

Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling enterprises, associates and the society to Rise™. This arm of Mahindra group is constantly focusing on bringing tomorrow’s technology to businesses today.

  • Revenue at Rs 8,276 crores, up by 12.8 % YoY
  • (PAT) at Rs 898 crores, up by 12.4% YoY

C.P. Gurnani, MD & CEO, Tech Mahindra, says, “The overall business growth trajectory for the FY19 is on track. While business seasonality has affected the current quarter, our Run Change Grow Strategy with strong focus on digital transformation is keeping the business buoyant. The changing demand landscape for next generation technologies is going to fuel the digital business further."

Pininfarina Group

Pininfarina designs, engineers and manufactures high-end technology, extreme performance, luxury electric vehicles for the most discerning global customers.

  • Value of production increased by 39.6%, compared to the figures on June 30, 2017
  • Net profit of 3.1 million euros which compares with the net loss of 0.6 million euros last year.

Silvio Pietro Angori, CEO, Pininfarina, says, "Consolidated data for the first half of 2018 shows record results for Pininfarina compared with those of the first half of 2017: increase in production value and strong growth in EBITDA, EBIT and net profit period.”

Mahindra Finance

Mahindra & Mahindra Financial Services Ltd. is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, they have over 5.5 million customers. They are the leading vehicle and tractor financier and offer fixed deposits and loans to SMEs.

  • Income at Rs.1940 crores up by 29% YoY
  • PAT at Rs.269 crores up by 34% YoY

Mahindra Holidays and Resorts India Ltd.

Mahindra Holidays & Resorts India Limited is India’s leading player in the leisure hospitality industry. They offers quality family holidays primarily through vacation ownership memberships.

  • Income at Rs. Rs. 295.4 crores up 8.0% YoY
  • PAT at Rs 36.8 crores up 13.8% YoY

Commenting on the results, Kavinder Singh, MD & CEO, Mahindra Holidays & Resorts India Ltd., says, “Our strategy of enhancing our resort experiences, member engagement and digitization of customer facing processes has yielded significant growth in all key operational and financial metrics e.g. member additions, resort income, high occupancies and improved profit margins.”

Mahindra Logistics Ltd.

Mahindra Logistics Ltd. (MLL) is one of India’s largest 3PL solutions providers. Founded more than a decade ago, MLL serves over 350 corporate customers across various industries like automobile, engineering, consumer goods and E-commerce.

  • Revenue at Rs.928 crore up by 9%
  • PAT at Rs. 24 crores up by 61%

CEO of Mahindra Logistics Pirojshaw Sarkari (Phil) says, “We continue to focus on improving profitability. This quarter, the profit growth was significantly higher because of expansion in gross margins, increase in other income, and nil strategic consulting fees compared to last year. We remain buoyant on the logistics sector potential and will continue our endeavor to shape the industry and expand our business.”

Mahindra Lifespaces

Mahindra Lifespace Developers Limited (MLDL) the real estate and infrastructure development business of the Mahindra Group has recorded a profit of 26.7 crore for Q1F19.

  • The consolidated total income for the quarter was Rs. 175.8 crores as against Rs. 148.7 crores in Q1 FY18 and Rs. 180.6 crores in Q4 FY18.
  • The consolidated PAT, post minority interest, stood at Rs. 26.7 crores for the quarter as against Rs 13.8 crores in Q1 FY18 and Rs. 47.8 crores in Q4 FY18.

Anita Arjundas, MD, Mahindra Lifespace Developers Ltd., says, “This has been a transitionary quarter in terms of shifting to new standards that are based on completion of contracts and hence the financial numbers are not directly comparable with previous periods. Strong collections, the launch of ‘Roots’ at Kandivali, and the multi-product SEZ at Jaipur are key milestones for the quarter. Multiple new projects that are targeted for launch during the year will further strengthen operational throughput and performance.”

Rise for Good
Mahindra Takes the Lead in India’s Climate Change Program

India’s sustainable efforts in fighting climate change was in the spotlight at a meeting in New Delhi on August 9th, 2018. The event was attended by participants from across the sustainability fora. The Sustainability Roundtable, organized by the Mahindra Group, was a run-up to the Global Climate Action Summit (GCAS) scheduled in September in California.

The many programs of climate change were focused upon at a panel discussion moderated by Chief Sustainability Officer, Mahindra Group Anirban Ghosh. Dr Ajay Mathur, Director General, The Energy Research Institute (TERI) said, “India has done well on the sustainability front and we have seen that the actions that are being taken are not only good for the environment it translates to more jobs, better income and cleaner society.”

Dr. Arunabha Ghosh, Chief Executive Officer, Council on Energy, Environment & Water (CEEW), observed, “While we are doing well, we need to accelerate like we did well with LED technology we now need to look at renewables beyond light bulbs.”

Anirban Ghosh commented, “In spite of the many challenges, India is a conscious and responsible member of the world order. The government and corporations in the country have taken exemplary action and are now counted amongst the leaders when it comes to fighting climate change. The time now is to step up this ambition.”

The Mahindra Group has always led by example. Even though, India’s sheer size and growth makes sustainability both a challenge and a necessity, Mahindra has demonstrated that sustainability does not come at the cost of profit; the revenue from Mahindra’s green businesses is now upwards of USD 400 million. Chairman Anand Mahindra will co-chair the GCAS in California this September. He had issued a challenge at Davos to all companies to set science-based targets (SBTi) to cut their greenhouse gas emissions; SBTi is a clear roadmap for corporates to shrink their carbon footprint in line with the Paris Agreement goals.

Thirteen companies of the Mahindra Group are committed to sustainable practices to reduce greenhouse gas emissions. In 2017, Mahindra & Mahindra became the first company in India to announce its internal carbon price of USD 10. M&M is also the first global company to join The Climate Group launched EP100, a global energy commitment to double the energy productivity by 2030.

Innovation
Pune’s First Smart City Offline Hackathon with Tech Mahindra

Come September 29 and Smart City Pune will be in the limelight. The city will host its first ever offline ‘Smart City Hackathon’ that will leverage crowdsourcing to solve the challenges of urbanization. The hackathon will be held at the Savitribai Phule Pune University campus.

Tech Mahindra, Pune Smart City Development Corporation and NITI Aayog have invited participants from across the country to come up with inventive ideas and solutions to co-innovate the solutions with the citizens. The aim is to innovate and develop solutions for issues like urban mobility, solid waste management, water supply, citizen safety and security. Pune Smart City will incubate the best teams, refine and use the ideas in Pune and across India.

It came as no surprise that Pune was selected to hold the city’s first ever hackathon. Pune ranked second in the Smart Cities competition organized by the Government of India. Among the successful projects are the Free Pune Wi-Fi, Smart Public Bicycle Sharing, Smart Placemaking, Smart Street Redesign, Smart Command and Control Center and Smart Elements, Lighthouse and Citizens Engagement.

Pune Smart City is also mentoring other Smart Cities in the SPV to SPV Coaching Program initiated by the Central Government. In fact, the Pune Smart City model has been replicated by Dharamshala (Himachal Pradesh), Faridabad (Haryana), Madurai, Salem, Tiruchirappalli, Tiruppur, Vellore, Erode (all in Tamil Nadu) and Varanasi (Uttar Pradesh).

Jagdish Mitra, Chief Strategy & Marketing Officer, Tech Mahindra says, “Pune is a key center for Tech Mahindra, as the city has offered us both good talent and avenues to grow. We are humbled with this opportunity to serve this city through our core competency of technology, and facilitate a mélange of ideas to solve urban governance challenges. The Smart City Hackathon through co-creation and co-innovation will enable the creation of an ecosystem where next gen technologies like Artificial Intelligence are applied to make citizen’s life easier.”

Commenting on the hackathon, Anna Roy, Advisor, Niti Aayog, said, “NITI is very happy to collaborate with Pune Smart City and a technology leader like Tech Mahindra to explore how frontier technologies can be leveraged to address city specific issues. The rate of urbanization being witnessed in India and given the commitment of the government to improve the quality of life of citizens it becomes very important to take such initiatives. We not only address the urbanization issues but also help nurture the research and innovation ecosystem in the country”.

Dr. Rajendra Jagtap, CEO, Pune Smart City, expressed optimism at the development and said, “We are proud of our association with NITI Aayog and excited to partner with a technology leader like Tech Mahindra. We live in a technology driven era and there are greater opportunities than ever before to explore and innovate. This is an advent of the power of intelligence from all sections of society to pull together innovative solutions and co-create a livable, secure and resilient space. I encourage start-ups, entrepreneurs and various sectors to come together to solve issues affecting our cities and the nation at-large.”

The hackathon is a demonstration of Tech Mahindra’s commitment towards nation building and creating future ready sustainable solutions. As part of its TechM Next charter, Tech Mahindra is focused on co-creating solutions with start-ups to build a smart future.

Tweet of the Week

Mahindra Truck and Bus -

This 15th August, India will mark its 72nd #IndependenceDay. On this day, Mahindra Truck and Bus pays tribute to all Indians, showcasing the spirit of "Anekta Main Ekta". Happy Independence Day! #FeelTheNation

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