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M&M financial result

F2019* Revenue crosses Rs. 50,000 crores and PAT Rs. 5,000 crores

F2019 Consolidated Revenue crosses Rs. 1,00,000 crores

Q4* Revenue at Rs. 14,055 crores and PAT (before EI) at Rs. 1,074 crores

Mumbai, 29th May 2019: The Board of Directors of Mahindra & Mahindra Limited today announced the financial results of the Company for the quarter ended 31st March 2019 and the audited results for the year ended 31st March 2019 and for the consolidated Mahindra Group.

Q4 F2019 – M&M + MVML** Results

  Rs. crores
  Q4 F2019 Q4 F2018 Growth % YoY
Revenue and Other Income 14,055 13,355 5%
Profit from ordinary activities Before Tax (before EI) 1,515 1,672 -9%
Profit from ordinary activities After Tax (before EI) 1,074 1,107 -3%
Profit from ordinary activities After Tax (after EI) 969 1,155 -16%
Operating margin (OPM) 13.5% 15.1%  
       
Vehicles sold (Nos) 1,63,937 1,56,453 5%
Tractors sold (Nos) 56,903 66,885 -15%
Exports (vehicles and tractors) (Nos) 13,541 12,459 9%

The muted demand in rural India on account of poor distribution of SW monsoon, a deficit NE monsoon and weak agricultural incomes due to poor price realization, stress in the NBFC sector leading to tight credit conditions along with low demand in urban India and the overall sluggishness in the economy led to a fall in both the tractor and automotive industry during Q4 of F2019.

The domestic tractor industry witnessed a fall of 8.4% during the quarter and the Company sold 56,903 tractors in the domestic market and exported 3,341 tractors, a decline of 14.9% and 10.9% respectively over the corresponding quarter of the previous year. After seven successive quarters of growth, the domestic automotive industry witnessed a reversal in Q4 F2019 mainly due to negative growth of 2% and 5.9% in the Passenger Vehicle (PV) & MHCV goods industry respectively. Despite the above mentioned head winds impacting the PV segment the Company successfully weathered these challenges and sold 77,607 vehicles during Q4 F2019 recording a growth of 7% over the corresponding quarter of the previous year. The launch of the cheetah inspired and stylish XUV300 having best-in-segment safety features, first-in-segment hi-tech features and class-defining interiors helped the Company grow its Utility Vehicle sales by 6.8% in Q4 F2019 with a market share of 27.9%. In April 2019, the XUV300 became the second-highest selling sub-4 metre SUV brand in India. The Company now has three strong new products which will see full year impact on volumes in F-2020. The Company also exported 10,200 vehicles during the current quarter, registering a growth of 17.1% over the corresponding quarter previous year.

F2019 – M&M + MVML Results

In F2019 the revenue and other income of the Company stood at Rs 54,478 crores a growth of 12% over the previous year. The profit after tax (before EI) at Rs 5,430 crores grew a significant 30% over the previous year. This is the first time that the revenue and profit have crossed Rs. 50,000 crores and Rs. 5,000 crores respectively.

  Rs. crores
  F2019 F2018 Growth % YoY
Revenue and Other Income 54,478 48,529 12%
Profit from ordinary activities Before Tax (before EI) 7,011 6,182 13%
Profit from ordinary activities After Tax (before EI) 5,430 4,190 30%
Profit from ordinary activities After Tax (after EI) 5,401 4,623 17%
Operating margin (OPM) 14.2% 14.8%  

Q4 & F2019 – M&M Standalone Results

  Rs. crores
  Q4 F2019 Q4 F2018 F2019 F2018
Revenue and Other Income 14,272 13,479 55,303 50,481
Profit from ordinary activities After Tax (before EI) 954 1,011 4,826 3,922
Profit from ordinary activities After Tax (after EI) 849 1,059 4,796 4,356

The Board of Directors has recommended a dividend of Rs. 8.50 (170%) per share of face value Rs. 5.00 (previous year Rs. 7.50 (150%) per share of face value Rs. 5.00 each) and will be paid to those shareholders whose names stand registered in the books of the Company as on the book closure date.

F2019 – Group Consolidated Results

  Rs. crores
  F2019 F2018 Growth % YoY
Revenue and Other Income 1,05,806 93,896 13%
Profit after tax after Non-Controlling Interest (before EI) 5,091 5,050 1%
Profit after tax after Non-Controlling Interest (after EI) 5,315 7,510 -29%

A full summation of Gross Revenue and other income of all the group companies taken together for the year ended 31st March 2019 is Rs. 1,44,033 crores (USD 20.7 billion).

Outlook:

Domestic economic activity had weakened during F2019 especially during the second half of F2019 and there are continued uncertainties with respect to the extent of monsoon activity for this year. The expectations in the global scenario are also muted due to the potential for further escalation in global trade tensions. In this scenario, the new Government coming back with a decisive mandate provides cause for optimism, signalling a period of political stability, continuity in governance and consistency in policy decisions. The 100 day plan mentioned by the Government also demonstrates the resolve of the new Government to hit the ground running. Inflation projections are benign, and it is expected to remain below the target level of 4%, leading to expectations of a continued accommodative policy stance by the RBI. These as well as other factors like improved Bank credit off-take, increased financial flows to the commercial sector and expected stability in crude oil and other commodity prices, provide reasons for recovery in economic growth in the coming quarters.

Note: Translation of rupee to dollar is a convenience translation at the average exchange rate for the twelve month period ended 31st March 2019.

About Mahindra

The Mahindra Group is a USD 20.7 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It enjoys a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company, by volume. It also enjoys a strong presence in agribusiness, aerospace, commercial vehicles, components, defense, logistics, real estate, renewable energy, speedboats and steel, amongst other businesses. Headquartered in India, Mahindra employs over 2,40,000 people across 100 countries.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise

Media contact information

Mohan Nair
Vice President (Communications)
Mahindra & Mahindra Ltd.
Landline - + 91 22 28468510
Email - [email protected]