Physical Address
Bengaluru, Karnataka
Table of Contents
About Mahindra and Mahindra
Mahindra & Mahindra will be holding its 79th Annual General Meeting (AGM) on 29th July, 2024. Let us quickly go through the annual report of Mahindra & Mahindra. The company was incorporated in 1945. Mahindra has presence in 20+ sectors through its group companies, a snapshot of Mahindra & Mahindra (M&M), the group company:
- Mahindra has big presence in Automobile sector
- Mahindra & Mahindra has a huge presence in the Farm equipment sector. In fact, M&M is the biggest Tractor manufacturer in the world.
- M&M has presence in the financial services sector through its subsidiary Mahindra and Mahindra Financial Services Limited.
- Tech Mahindra is a big name in the IT sector.
- M&M has presence in the hospitality sector through Mahindra Holidays and Resorts
- Mahindra Logistics had reported revenue of ₹5,506 crore in FY23-24
- Mahindra Lifespace Developers is the real estate company in M&M stable
- M&M subsidiary Swaraj Engines, makes diesel engines and its components
- Mahindra Susten is an EPC contractor for renewal energy and also an independent power producer
- Mahindra Accelo is an auto component maker and it is also into automotive recycling
- Car&Bike is into pre-owned cars
- Mahindra Aerospace and Mahindra Defence System have high hopes from government of India’s make-in-India initiative
Mahindra & Mahindra workforce and ESG initiatives
As-of 31st March 2024, M&M had a workforce of 64,992 permanent and non-permanent employees. There were 1,139 permanent women employees. 87% of the employees were unionised. The company had spent ₹4,416 crore on employee benefit. The company trained 20,329 permanent and 22,877 non-permanent employees in FY23-24.
The company had spent ₹113 crore on CSR initiatives. The number of employees who volunteered for CSR initiatives was 12,263. The total number of girls trained under Nanhi Kali initiative was 73,653. The company also empowered 1,86,715 women through its women empowerment initiatives. Almost 1.8 million trees were planted as part of Project Hariyali.
The company targets to be net carbon neutral by 2024. M&M has an internal target of using renewal energy for 50% of its use by 2025. There is also a target of planting 5 million trees per year by 2026. The company is also aiming to reduce scope 1 and scope 2 emissions by 47%.
The chairman of M&M is Mr. Anand Mahindra. Other key people on the board are Dr. Anish Shah (Group CEO & MD) and Mr. Rajesh Jejurikar (ED and CEO of Auto and Firm Sector). There are three women on the board of M&M.
More from the Annual Report of Mahindra & Mahindra
The company has 47 manufacturing plants in India. It had sold 8,24,939 commercial and passenger vehicles in FY23-24.
M&M has market share of 20.4% in SUV segment and 49% in the LCV segment. The company had sold 3,78,386 farm equipment and it had a market share of 41.6%. While the volume grew for the automotive sector by 18%, the number of farm equipment sold in FY23-24 was 7% less than the volume of FY22-23. The group has business presence in over 100 countries. The company also has 22 manufacturing facilities outside India.
Volumes of Automotive and Farm Equipment sectors
Financials of Mahindra & Mahindra
Standalone Financials
The total income of the company in FY23-24 was ₹103,158 crore. The PAT for the financial year was ₹10,718 crore. The EPS jumped from ₹54.70 in FY22-23 to ₹89.42 in FY23-24. Debt to Equity ratio fell from 0.11 to 0.08. The Automotive and Farm sectors contributed to 72.57% and 25% of income, respectively. The debt fell from ₹4,644 crore in FY22-23 to ₹1,585 crore in FY23-24. The reserves stood at ₹51,677 crore at the end of the financial year.
The company reported cash and cash equivalents of ₹1,869 crore and bank balances of ₹3,657 crore. M&M also has ₹1,846 crore as capital work-in-progress in its books.
Consolidated Financials
The annual report of Mahindra & Mahindra further shows that, on consolidated basis, M&M’s borrowings jumped to ₹103, 203 crore in FY23-24 from ₹88,767 crore in FY22-23. The company had ₹3,461 crore in its book as Capital work-in-progress. The company also had ₹2,448 crore as Goodwill in its books. The annual report of Mahindra & Mahindra also informed us that Cash and cash equivalents and Bank balances were ₹4,530 crore and ₹7,483 crore, respectively. The Reserves stood at ₹ 65,633.17 crore. EPS on consolidated basis stood at ₹100.70.
Mahindra & Mahindra stock has given a return of 267% in the last three year. The stock is trading at a TTM PE of 28.17 and Price to Book Value ratio of 5.44. The market capitalization was ₹354,000 crore as-of 8th July 2024. The ROE(%) of M&M was 18.54. In his Chairman’s message, Mr. Anand Mahindra mentioned that the valuation of growth gems of the company has increased by 4x to $4.2 billion in the last 4 years. The MD and CEO, Mr. Anish Shah, in his message to the shareholders shared that the company is expecting that the valuation of the growth gems will further increase by 5x over the next 5-7 years.
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