mahindra mahindra ltd share price Management discussions

Mahindra & Mahindra Limited ("M&M") or (Mahindra) is the flagship company of the Mahindra Group, which consists of diverse business interests across the globe.

At Mahindra, we constantly push the boundaries of possibilities to create products and technology led services that enable our customers and stakeholders to Rise. By focussing on customer centricity, delivering accessible technology, innovation and enhancing people capabilities, we continue to drive growth in the domestic market while pursuing global expansion.

In the Financial Year 2021-22, your Company sold 455,570 vehicles (a growth of 30.7% over the previous year) and 354,698 tractors (under the Mahindra, Swaraj and Trakstar brands, a flat growth over the previous year, albeit with a marginal increase of 200 units over last year). However, this is the highest ever tractor sales in any year by Mahindras Farm Equipment Sector.

The Automotive and Farm Sectors, along with their subsidiaries, associate companies, and joint ventures, achieved global sales of 0.84 million vehicles and tractors (464,636 vehicles* and 375,023 tractors), a growth of 15.1% over the previous year.

*Excluding SsangYong


¦ Automotive Industry

In CY2021, worldwide sales of Passenger Cars and Commercial Vehicles increased to 82.7 million, a growth of 5.0% over the CY2020 sales of 78.8 million. Global Passenger car sales reported a growth of 4.6% and commercial vehicle sales reported a growth of 5.7%. The global auto industry is still recovering from COVID-19 impact and is down by 14% from an all-time high in 2017.

(Source: OICA - Organisation Internationale des Constructeurs dAutomobiles)

The long-term growth outlook for the Indian auto industry is positive, driven by robust economic growth outlook, focussed Government policies with vision for 2047, Government focus on road and infrastructure development, increasing income levels, current low levels of vehicle penetration, rapid urbanisation and a large, young and aspiring population.

While the long-term outlook for the Indian auto industry is promising, there has been some softening of demand for automobiles in the three-year period between F19 - F22, as compared to the previous ten-year period of F09 - F19. Exports from India too have slowed down in this period.

The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 49% CAGR over the last four years. Annual global EV sales stand at 3.6 million which is 6.4% of total PV sales, as compared to just 0.6% five years back.

Segment CAGR F09-F19 CAGR F19-F22
PV (Domestic sales) 8.1% -3.1%
CV (Domestic Sales) 10.1% -10.7%
Domestic Sales (Excl. 2W) 8.3% -7.3%
PV (Export) 7.3% -5.1%
CV (Export) 8.9% -2.6%

The softening of demand in the last three years is a result of tapering of GDP growth, shortage of semiconductors, loss of income due to COVID-19 in F20-21, increasing cost of ownership due to addition of multiple safety features and implementation of stricter emission norms during the last few years.

The Indian auto industry is aware of the need for reducing dependence on imported oil, improving safety on the roads and most importantly, the need for clean air.

Over the years, the industry has made significant investments in indigenisation of technologies in the conventional vehicles space e.g. meeting BS-VI in 3 years is an example. Government has notified Electric vehicle technology and Hydrogen fuel cell technology as advanced automotive technology under PLI (Production Linked Incentive) scheme.

The Government has announced the PLI (Production Linked Incentive) scheme for AAT (Advance Automotive Technologies) like battery electric vehicles and hydrogen fuel cell vehicles.

Furthermore, with the objective of maximising local value addition and building competitiveness of the Indian industry, the Government has announced the Phased Manufacturing Plan (PMP). The Indian auto industry is making the necessary investments and is focussed on building capabilities in the EV space.

¦ Auto Industry in FY 2022

In Financial Year 2021-22, Indian auto industry sales (excluding two-wheelers) have shown signs of recovery compared to F21. Industry is still down from F19 volumes by 20%.

Partial recovery of Auto Industry was principally a result of:

Pandemic impact in Q1F22.

Shortage of supply of semiconductors.

Price increase of vehicles on account of sharp increase in commodity prices.

As a result, the industry volume of Commercial Vehicles are showing slower recovery and are still down to F17 levels. Passenger Vehicle segment has shown the fastest recovery led by highest ever Utility Vehicle sales.

Over the ten years between F12 and F22, the Utility Vehicle (UV) segment has witnessed a good growth of 15.1% CAGR. UV, as share of PV, has increased from 13.8% in F12 to 48.5% in F22.

This growth in UV is driven by increased customer preference for UV-styled vehicles and a shift from compact cars to compact UVs (less than 4m length). In the last two years (F20 - F22), there were 16 new launches in the UV segment, and these accounted for 11% of UV volume in F22. For the year F22, compact UVs accounted for 51% of UV volume.

We believe that electric vehicle adoption in India would be led by e-3W; the key drivers being improving operating economies, easy deployment for last/first mile connectivity (including at metro stations) and the growth of start-ups as 3W aggregators. For the year F22, a total of 22,987 e-3W were sold, accounting for 8.8% of the 3W industry.

Industry Segment

Domestic Industry Volume

YoY Growth

F20 F21 F22 F20 F21 F22
Passenger Cars 16,95,436 15,41,866 14,67,056 -23.6% -9.1% -4.9%
Utility Vehicles 9,45,959 10,60,750 14,89,178 0.5% 12.1% 40.4%
MPV (Vans) 1,32,124 1,08,841 1,13,265 -39.2% -17.6% 4.1%
Passenger Vehicles 27,73,519 27,11,457 30,69,499 -17.9% -2.2% 13.2%
MHCV 2,24,428 1,60,688 2,40,577 -42.6% -28.4% 49.7%
MHCV Passenger 40,016 7,322 11,804 1.0% -81.7% 61.2%
MHCV Goods 1,84,412 1,53,366 2,28,773 -47.5% -16.8% 49.2%
ICV Goods (7.5 to 12T) 41,175 27,962 34,822 -46.1% -32.1% 24.5%
MCV Goods (12 to 18.5T) 40,327 37,402 51,835 -0.9% -7.3% 38.6%
HCV Goods >18.5T 1,02,910 88,002 1,42,116 -56.0% -14.5% 61.5%
LCV 4,93,165 4,07,871 4,75,989 -20.0% -17.3% 16.7%
LCV Passenger 45,814 12,088 19,957 -12.2% -73.6% 65.1%
LCV Goods < 2T GVW 1,79,227 1,40,109 1,71,461 -23.7% -21.8% 22.4%
LCV Goods 2-3.5T GVW 2,31,764 2,25,658 2,51,944 -17.3% -2.6% 11.6%
LCV Goods > 3.5T GVW 36,360 30,016 32,627 -26.1% -17.4% 8.7%
Total CV 7,17,593 5,68,559 7,16,566 -28.8% -20.8% 26.0%
3W Passenger 5,25,532 1,35,414 1,83,607 -8.2% -74.2% 35.6%
3W Goods 1,11,533 84,032 77,388 -13.3% -24.7% -7.9%
3W 6,37,065 2,19,446 2,60,995 -9.1% -65.6% 18.9%
Scooters 55,65,958 44,82,305 40,09,076 -16.9% -19.5% -10.6%
Motorcycles 1,12,13,662 1,00,21,231 89,84,186 -17.5% -10.6% -10.3%
Mopeds 6,36,812 6,17,247 4,73,150 -27.7% -3.1% -23.3%
2W 1,74,16,432 1,51,20,783 1,34,66,412 -17.8% -13.2% -10.9%
Quadricycle 942 -12 124 50.2% -101.3% -1133.3%
Total Domestic 2,15,45,551 1,86,20,233 1,75,13,596 -18.0% -13.6% -5.9%
Total Domestic (Excl. 2W) 41,29,119 34,99,450 40,47,184 -18.8% -15.2% 15.7%

¦ Tractor Industry

The long-term growth outlook for the Indian tractor industry remains positive. Over the period F07 to F22, the domestic tractor industry grew at a CAGR of 6.7%. The key growth drivers were increasing affordability, growing demand for farm mechanisation, emergence of newer technologies in the farming sector, increasing Government spend in rural sector, and continued focus of Government on improving the state of agriculture in India.

¦ Tractor Industry in FY 2022

Indian tractor industry for the second consecutive year reported annual volume surpassing 8 lakh unit milestone in domestic market. The year did see de-growth of around 6.4% over FY21, a part of which can be attributed to high base of last year when the industry witnessed steep growth of around 27% YoY. In exports, industry remained buoyant with more than 45% YoY growth and volumes were highest ever in the history of Indian Tractor Industry.

Agriculture sector stood strong with multiple factors favouring rural sentiments. Amidst rising inflation with input costs such as tractors, farm machinery, seeds, etc., increasing, the rural sentiments saw respite with 3 consecutive years of growth in crop output boosted by normal monsoons.

With expectation of normal monsoon in the following crop season, we expect the momentum to continue and benefit both rural segment and our business as well.

The year also witnessed revival in demand from commercial segment which was tepid during previous year.

Increase in allocation of Government budget on infrastructure and rural development is likely to benefit commercial demand, going forward. In addition to demand remaining buoyant, supply situation also eased during FY22 as raw material and labour shortage which crippled the industry in the previous year saw normalization. Your Companys share in Domestic Tractor Industry stood at 40% in FY22.

The table below summarises the performance of your Company across various Industry segments:

Industry Segment



M&M Market Share

F22 (volume) Growth F22 (volume) Growth F22 F21
Utility Vehicles 14,89,178 40.4% 2,23,682 43.8% 15.0% 14.7%
Passenger Cars 14,67,056 -4.9% 59 490.0% 0.0% 0.0%
MPV (Vans) 1,13,265 4.1% 2,154 28.5% 1.9% 1.5%
Passenger Vehicles 30,69,499 13.2% 2,25,895 43.7% 7.4% 5.8%
LCV Goods < 2T GVW 1,71,461 22.4% 32,039 34.7% 18.7% 17.0%
LCV Goods 2-3.5T GVW 2,51,944 11.6% 1,38,643 8.2% 55.0% 56.8%
LCV Goods < 3.5T 4,23,405 15.8% 1,70,682 12.4% 40.3% 41.5%
LCV Goods > 3.5T GVW 32,627 8.7% 1,750 65.3% 5.4% 3.5%
LCV Goods Total 4,56,032 15.2% 1,72,432 12.7% 37.8% 38.6%
M+ICV Goods (7.5 to 18.5T) 86,657 32.6% 1,135 65.9% 1.3% 1.0%
HCV Goods > 18T 1,42,116 61.5% 3,409 40.5% 2.4% 2.8%
MHCV Goods 2,28,773 49.2% 4,544 46.1% 2.0% 2.0%
LCV Passenger 19,957 65.1% 141 39.6% 0.7% 0.8%
MHCV Passenger 11,804 61.2% - - - -
CV Passenger 31,761 63.6% 141 39.6% 0.7% 0.8%
CV Total 7,16,566 26.0% 1,77,117 13.4% 25.1% 27.5%
3W 2,60,995 18.9% 20,131 19.1% 7.7% 7.8%
Quadricycle 124 1133.3% - - - -
Total Domestic 40,47,184 15.7% 4,23,143 28.1% 10.5% 9.4%

In F22, your Company launched the Bolero Neo, which builds on the legacy of the Bolero brand to cater to an evolving customer who is looking for an SUV that is tough and authentic yet modern, trendy, and compact.

This enhanced value proposition saw the Bolero brand increase its presence in big metros by a significant margin over the past. Bolero Brand was the 2nd largest selling SUV in India in February 2022.

Next, your Company launched the XUV700, the biggest ever launch in the Indian automotive industry, clocking an unprecedented 50,000 bookings within a 3-hour booking window (spread over 2 days), making it the first four-wheeler to hit this milestone in India and went on to become the fastest-selling SUV in India to garner more than 1,00,000 bookings in 4 months.

The XUV700, first in a new generation of authentic and sophisticated SUVs from your Company, attracts customers from diverse profiles with its disruptive customer-value proposition of unmissable presence, spirited performance, sci-fi technology, and world-class safety at a price that the market cannot ignore.

The XUV700 is also Indias No. 1 Safest Vehicle with a 5-star Safety Rating from Global NCAP.

It has received 35 awards from the media and auto-community in F22 including the coveted Indian Car of the Year 2022 (ICOTY 2022) award.

Earlier in the year, your Company unveiled an all-new visual identity, including a new logo, to differentiate its sophisticated and authentic SUV portfolio from other offerings. The new identity is inspired by your Companys SUV brand purpose of Explore the Impossible, reflecting its ambition and ability to take on new challenges, head on.

The new logo, referred to as Twin Peaks, was first seen on the XUV700, and will be seen on all your Companys existing and new SUVs in due course, while also proudly gracing the frontage of your Companys sales and service outlets.

The iconic Thar crossed the 1,00,000 bookings mark continuing its momentum from F21 into F22. Scorpio and XUV300 continue to attract strong demand.

Your Company has successfully transformed its SUV brand and the SUV business stands at No.1 Position in Brand Power (Q4F22 results) as compared to 3rd position last year (Q4F21).

Your Company has retained #1 position in LCV <3.5T segment, which is the largest segment of CV industry, with 40.3% market share, for the eight consecutive year. LCV <3.5T accounts for 59.1% of the total CV industry.

In the Pickup sub-segment (LCV goods 2 to 3.5T), your Company sold 138,643 vehicles, a growth of 8.2% over the previous year. Your Companys market share in the Pickup segment stands at 55.0%. Your Company has been the leader in the Pickup segment for over 20 years, and it has always been your Companys endeavour to enhance the customer value proposition of its offering.

In <2T segment, M&M sold 32,365 vehicles, a growth of 36.1% over the previous year. M&M market share grew by 1.8% over last year and stands at 18% in <2T segment. In F22, your Company launched the Supro Profit Truck (Maxi and Mini) with industrys first Profit Guarantee proposition which assures higher profit for the customer with its best-in-class mileage, higher load carrying capacity and more power.

In the Last Mile Mobility segment, your Company sold 30,079 passenger and goods 3-wheelers, a growth of 46.5%, with a market share of 11.5% in F22 vs 9.4% in F21. Your Company has a wide range of offerings including diesel and CNG products with the latest addition to Alfa range, Alfa CNG - both passenger and cargo variants which were launched during the year. The products are superior in performance, mileage, and overall earning, and have been widely accepted by customers across the country.

Your Company is the pioneer for Electric Vehicles (EVs) in India, and for the year under review, sold 17,006 EVs (59 four-wheelers and 16,947 three-wheelers) as against 5,418 EVs (10 four-wheelers and 5,408 three-wheelers) in the previous year. Your Company, the first Indian manufacturer, has surpassed more than 400 million electric kilometres through a fleet of Treo, e-Veritos and E2o Plus vehicles.

Your Company has partnered with major e-commerce players such as Flipkart and Amazon, and fleet logistics such as Mahindra Logistics, Terrago Logistics and Magneta for expansion of their carbon-free fleet delivery vehicles.

In the LCV Goods & Passenger vehicles (3.5-7.5T), your Company sold 1,891 vehicles, a growth of 63.0% over the previous year. Your Companys market share in this segment, where it is a challenger brand, stands at 3.6%. Your Company launched the all-new FURIO LCV which was declared as LCV Cargo Carrier of the Year at Apollo CV Awards 2022.

In the MHCV segment, your Company sold 4,544 vehicles, a growth of 46.1% over the previous year with a market share of 2.0%. Your Company has reintroduced its disruptive customer value proposition of Getmore mileage or give truck back for the entire range of trucks (LCVs, ICVs and HCVs) to strengthen its right to win. Also, the unique and pioneering after-sales guarantees of Get back on road in 48 hours or get Rs. 1000/day and 36 Hours Turnaround at our Dealership or you get Rs. 3000 per day, have also been re-introduced to enhance customer prosperity.

¦ Mahindra Construction Equipment

In the Construction equipment industry in the Backhoe Loader segment, your Company sold 729 machines, a growth of 7.0% over the previous year. Your Companys market share in the Backhoe Loader segment, where it is a challenger brand, stands at 2.4%. In Motor Grader Segment (Mahindra EarthMaster brand), your Company sold 117 machines, a growth of 42.7% over the previous year. M&M market share grew by 3.2% over last year, and stands at 20% in this segment.

In F22, your Company was one of the first to introduce the BS4 range, which has won awards and accolades for one of the lowest TCO (Total Cost of Ownership) with highest fuel-efficiency.

¦ Export from India - Automotive Sector

The Automotive Sector of your Company exported a total of 32,427 vehicles in F22, a growth of 76.7% over the previous year. While recovering from the pandemic, all key markets and subsidiaries recorded growth. Your Company boosted retail growth in South Africa and South Asia with new launches of products like XUV300 and City Pikup. The increase in total exports was supported by improved supplies and strong demand across markets. Your Company continues its effort to widen its product range for global markets and explore alternate business models including CKDs (Complete Knock Down) and localisation.


Your Company achieved several milestones with robust demand for our tractors and farm equipment, and sound execution of our plans. Demand from global and domestic tractor markets were extraordinary, and with the right efforts made in this business, we were ready to seize those opportunities to the best of our abilities.

For the period under review, your Company sold a total of 354,698 tractors (domestic plus export), under the Mahindra, Swaraj and Trakstar brands, against 354,498 tractors sold in the previous year, registering a flat growth, with the industry operating on a very high base of F21.

Your Company sold 3,37,052 tractors, as compared to 3,43,833 tractors in the previous year in domestic market (these figures for the current year sales and previous year sales include tractors sold by Gromax Agri Equipment Limited, a Subsidiary of the Company), degrowing by 2%, as against the industry degrowth of 6.4%. The year marks the second highest ever tractor volumes sales achieved by your Company.

Given the COVID-19 situation, looking back, the agriculture sector stood strong despite several supply challenges during the first wave. However, agri sentiments remained positive, thanks to successive monsoon forecast.

Your Companys F22 market share at 40% continues to position it as the domestic market leader for the 39th consecutive year. Your Companys performance was supported by good performance of all products in the portfolio across all three brands viz. Mahindra, Swaraj and Trakstar.

Farm Mechanisation is an important enabler to address the concerns of farm productivity and farm labour shortage. Your Company has active presence in the farm mechanisation space through its farm machinery business and offers efficient and affordable mechanisation solutions across the spectrum of farming operations. These include rotary tillers, cultivators, harvesters, balers and rice transplanters amongst others.

During the year, Mahindra FES clocked the second highest revenue through the sale of FM (Farm Mechanisation) products, a new area of growth for your Company beyond tractors.

Considering the growing demand for farm mechanisation in India, your Company launched new Heavy Rotavator and Smart Rotavators during the year, with a 70% YoY growth in dealer penetration for Farm Machinery products and are working with financiers for standalone financing of farm machinery.

During the year, Swaraj Tractors launched CODE, a revolutionary new multi-purpose farm mechanisation solution to transform horticulture farming in India. An indigenously designed farm mechanisation solution, CODE is conceived with the idea of eliminating drudgery of labour involved in horticulture farming. The narrowest and the lightest ride-on machine, CODE will revolutionize horticulture farming in India, thereby allowing farmers to carry out inter-culture operations in narrow rows for various vegetable and fruit crops. Additionally, the shorter turning radius of this machine provides better manoeuvrability in smaller farms cultivating horticulture crops.

Going forward, Mahindra will continue to launch new implements and farm machinery in the country through our Centres of Expertise (CoEs) in Turkey, Finland and Japan (where your Company, over the years, has created footprints through strategic stakes and acquisitions). The objective is to bring all those products, engineered and further developed for Indian conditions and Indian prices for the Indian farmer.

Besides rolling out new products, your Company is also focussing on:

- Dealer Penetration,

- Ensuring Supply Chain Ramp up,

- Ensuring Aggressive Pricing of our products,

- Working with partners to strengthen our offerings in the space,

- Along with other enablers like Financing, Digitisation & Service Quality.

The Company is also setting up a dedicated new plant at Pithampur where it plans to produce rice transplanters, potato planters and harvesters.

¦ Export from India - Farm Equipment Sector

For the year under review, your Company achieved a record of the highest ever volume and revenue by exporting 17,646 Tractors. This represented a growth of 65.5% over the previous year.

This growth can be attributed to higher retails in several markets where your Company has distribution operations including the USA, Brazil, various African and South Asian markets of Nepal, Sri Lanka and Bangladesh. The Company has also made strides in exports towards tenders and bulk orders from markets like Benin, Guyana and Mali among others.


¦ Mahindra Powerol

Under the Powerol brand, your Company has been a leader in providing power back-up solutions to the telecom industry for more than 14+ years. Your Company continues to consolidate its presence in the tele-infra management space. Alongside Telecom, Powerol has been increasing the retail market share, especially with the extension in HkVA range. With the introduction of the BS IV range of engines, Powerol has introduced 21 new nodes for various industrial applications.

Powerol stands at No. 2 brand by volume in the overall Diesel Genset power back-up segment.

Powerols move towards sustainability has led to the introduction of the gas-powered gensets with introduction of 5 nodes between 15 kVA to 315 kVA. They offer lower operating costs and low emissions complying to the new emission norms.

During the year, Powerol also tied up with IGL Gas Stations for EV Charging Stations and introduced Solar Carport Solutions.

¦ Construction Equipment

For the year under review, your Company (under the Mahindra EarthMaster brand) sold 729 Backhoe Loaders (BHLs) against 681 in F21, which is a growth of 7.0%.

Your Company also has a presence in the road construction equipment business through motor graders (under the Mahindra RoadMaster brand). For the year under review, your Company sold 117 motor graders, as against 82 in F21 which is a growth of 42.7%.

Your Company has presence in Sugar Cane Haulage (under Mahindra Haul Master Brand) in Kenya. This is a new product which is added to the portfolio. For the year under review, your Company sold 105 Haulage tractors.

¦ Two-wheeler Business

In line with the strategy for the two-wheeler business, your Company through its subsidiary, Classic Legends Private Limited had reintroduced the iconic brand Jawa to the Indian market in the Financial Year 2019, with the launch of new range of JAWA motorcycles - Jawa and Jawa Forty- Two. In FY22 another iconic brand Yezdi has been reintroduced with three new models at the same time - Yezdi Adventure, Yezdi Scrambler and Yezdi Roadster.


¦ Automotive Sector

The auto industry is an engine of economic growth. The industry contributes to 6.4% of Indias GDP, almost 35% of manufacturing GDP, 15% of GST revenues, and provides 37 million direct and indirect jobs.

F22 has shown a partial recovery from last-eleven-years low in F21. Industry is still down by 9% in passenger vehicles, 29% in commercial vehicles, 63% in three-wheelers and 36% in two-wheelers from all time peak in F19. Industry recovery was restricted by two COVID waves in F22 and semiconductor shortage of supply. The second COVID wave during April-June was the most severe one while the third wave during December-January was a shorter one. Auto industrys fastest recovery opportunity was lost by the shortage of supply of semiconductors.

Over the years, the industry has made significant investments towards the indigenisation of technologies in the conventional vehicles space - meeting BS-VI in 3 years is an example. To reduce dependence on oil imports, the industry is exploring options of alternate fuels like CNG, LNG, Ethanol, etc. Industry is also exploring options of flex fuel vehicles in nearby future. The industry is also investing in next generation technologies like Electric Vehicles.

The Government introduced Production Linked Incentive (PLI) Scheme for Automobile, Auto components, ACC (Advanced Chemistry Cells) and semiconductors to overcome the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. The Government has recognised Electric Vehicle technology and Hydrogen fuel cell technology as an Advanced Automotive Technology in the country.


• Through PLI Auto and Auto components, the Government is offering incentives of Rs. 26,058 crores. The Government has been successful in attracting proposed investment of Rs. 74,850 crores

• PLI scheme is expected to result in incremental production of over around Rs. 2.3 lakh crore and additional employment opportunities of over around 7.5 lakh jobs

¦ Farm Equipment Sector

To drive sustainable growth in the agriculture sector, strong Government focus on its development is required, including increased adoption of mechanisation and modern agricultural practices, and rural development at large.

India, with its large base of small and marginal farmers, has several regions with low penetration of farm mechanisation. With increasing labour cost and labour scarcity, greater adoption of various forms of mechanisation is the way forward. In this scenario, the market for tractors and other farm equipment is expected to grow in the long term.

¦ Allied businesses

The rising demand for power backup solutions and infrastructure development will create opportunities in the power generation and infrastructure equipment space. This is an opportunity for the Company to grow its offerings in power solutions and construction equipment.


¦ Automotive and Farm Equipment Sectors

The Companys business is exposed to many internal and external risks and it has consequently put in place robust systems and processes, along with appropriate review mechanisms to actively monitor, manage and mitigate these risks.

¦ COVID-19 Pandemic and Geo Political crisis

COVID impact continued into F22 - the second wave which hit India in Q1 F22 disrupted business because of its intensity. Global supply chain was affected, impacting logistics cost and lead time due to port congestions and container unavailability.

Global automotive industry was badly affected due to semiconductor unavailability and as a result, the Company lost significant volumes in the 1st two quarters of F22. Countermeasures taken to mitigate the risk helped in increasing volumes in the 2nd half of the year and efforts are continuing to de-risk the supply chain to meet the business demand.

Q4 F22 saw another risk emanating due to the Russia- Ukraine conflict which led to soaring commodity prices and impact on availability of material. The Company took aggressive steps to counter the problem to minimise the impact including the effect of fresh wave of COVID in China threating global supply chain.

In F22, the Company initiated various countermeasures to minimise any short-term impact and mitigate any long-term impact on the Company. This included comprehensively looking at cost structures and optimising them, cash flow management, and sustained investment in new products.

Company-wide initiatives to bring down costs and conserve cash yielded some very good results in F22 and are expected to deliver benefits in the future.

¦ Competitive Intensity

Keeping in mind the high growth potential of the Indian automotive market, all OEMs, homegrown as well as MNCs, have presence across all vehicle segments. Today, multinational OEMs are deeply entrenched in the Indian market with local development centres, a strong local supplier base and good channel penetration. In the PV segment, the differentiation between cars and UVs is largely blurred. Industry has seen shift in demand from cars to UVs. This has led to a greater number of launches in UVs compared with cars.

As of now, 51% of UV sales are from UVs less than 4m in length, while UVs as a share of PVs stand at 49% (was 12.6% in F11).

The LCV < 3.5T commercial vehicle segment, which is 61.8% of the CV goods industry, is witnessing increased competition with new and competitive launches from homegrown as well as MNC brands.

With the aim to remain competitive in the market and sustain its leadership position, your Company continues to invest in new product development, technology upgradations and increasing channel reach, while focussing on delivering customer centric products, services and brand building.

¦ Tax Regulations

India has traditionally seen tax rate differential between small and large passenger vehicles. This differential is based on length of the vehicle, engine size and fuel type. While the flagship products of your Company attract higher tax rates, your Company has strengthened the UV product portfolio attracting lower tax rates with products like XUV300, Bolero Neo, Bolero Power Plus and KUV100.

¦ New Emission Norms

After BS-VI implementation in 2020, the Indian auto industry will now be looking at the next tranche of emission norms to follow in quick succession, with CAFE 2 (Corporate Average Fuel Economy) and RDE (Real Driving Emissions) planned for 2022-23. Your Company is working on various Powertrain and Vehicle level technologies such as friction reduction and electrification for further CO2 improvement needed to achieve the emission targets.

India remains a medium to high HP market for tractors, with more than 90 per cent of the sales coming from <50 HP categories. The revised emission norms for >50HP tractors, were initially slated to be implemented from October 2020. At first, it was deferred by one year to October 2021, subsequently by another six months to March 2022 in the wake of coronavirus pandemic and again by another 6 months to October 2022. Latest deferment is due to increase in tractor prices which may add to the farm communities woes in the face of the current rising inflation.

However, the transition to new emission norms in the tractor industry is unlikely to be a major disruptor as it would apply only to vehicles with engine capacity higher than 50 HP, impacting around 10 per cent of the overall industry volumes.

¦ New Regulation for Safety

Concerns over road safety are driving legislation and regulatory reforms. Any new legislation requires technology development and incurs costs, in turn impacting vehicle prices. Your Company is geared up and is confident of meeting any new regulations introduced.

¦ New Products and Technologies

Your Company has a comprehensive programme for development of new products and technologies which will enable it to remain competitive in the market, cater to emerging customer expectations and to meet any legislative requirements.

¦ Environment and Alternate Fuels

With concerns over air quality and the need to reduce dependence on fossil fuels, the Government is actively pursuing large scale adoption of EVs, especially for intracity uses in feet application. Your Company is a pioneer for Electric Vehicles in India and is actively pursuing development of the Electric Vehicle (EV) market, products and technology.

Your Company also started operations of its latest manufacturing hub in Chakan, Pune which will supply EV components.

¦ Monsoon

A normal monsoon is important for both agriculture as well as the rural economy at large. The tractor business in particular, and the automotive business to some degree, run the risk of a drop in demand, in case of a significant variation in the monsoon. In addition, an untimely monsoon and uneven spread has the potential of adversely impacting the business.

Going into F23, the Indian Meteorological Department (IMD) in its first long range forecast for the monsoon season predicted SW Monsoon (June to September) to be normal at 99% of the LPA (Long Period Average). However, with the outlook of IOD (Indian Ocean Dipole) conditions tilting towards negative by September, there is a risk of high volatility in monthly distribution.

¦ Reservoir level

Reservoir levels in April, 2022 were 28% higher than average. Adequate water in reservoirs coupled with narrowing deficit in pre-monsoon rains, helped significant progress in summer acreage. By end of April 2022, 70 lakh hectares were sown (up 7% YoY). However, the heat wave since mid-March, damaged standing crops. Wheat production that was estimated to reach a record high as per 2nd AE is likely to decrease by 11-12% YoY with the reported damage.

¦ Commodity Prices

A surge in post-pandemic global demand, outbreak of Russia-Ukraine war; coupled with severe supply side constraints resulted in a sharp rise in commodity prices.

This impacted the cost of various inputs used by the industry, including castings, forgings, steel sheets and precious metals. While there was a significant impact of the same on material cost, your Company was able to limit the impact through concerted efforts towards cost reduction with various initiatives including VAVE activities.

For F23, while your Company will take all steps to mitigate risks from the COVID-19 crisis, the increase in prices of certain commodities is likely to have an adverse impact on material cost in the first half of the financial year. However, the Company does expect prices of commodities to soften in the second half of the year with supply side constraints easing, limiting the impact. Your Company will continue to work on mitigating the inflationary impacts through cost re-engineering and value engineering activities.

¦ Capacity

Your Company has built adequate manufacturing capacity for the immediate future and is in the process of investing in additional capacity as part of its mid to long-term strategy for its Farm Equipment Sector. Swaraj Division has invested in creating additional manufacturing capacity by setting up a new manufacturing plant in Mohali.

Similarly, the Company expects that the market for farm equipment will only expand in the future. The Company is setting up a dedicated new plant at Pithampur where it plans to produce rice transplanters, potato planters and harvesters. The Company is investing Rs. 200 crores with its suppliers to set up this plant in the region.

The Company is working closely with its key suppliers to minimise any supply constraints through proactive capacity planning and longer-term contracts. At the same time, opportunities for global sourcing are also being actively pursued.


Both the Automotive and Farm Sectors strive to sustain profitable growth, maintain leadership position in the domestic market and at the same time, explore global opportunities for growth. Simultaneously, your Company continues its focus on achieving cost leadership through focussed cost optimisation, productivity improvements, value engineering, supply chain management, and exploiting synergies between various group businesses.

¦ Automotive Business

As per the Automotive Mission Plan 2026 (AMP 2026) the mid to long-term outlook for the Indian auto industry is positive. Honble Prime Minister unveiled Indian Auto Industry Vision @ 100 mentioning Auto Industry is the engine of economic growth.

In F22, first half was influenced by pandemic but posted growth on low base in F21. H2-F22 has seen good recovery in economic condition but supply was restricted by shortage of semiconductors.

Sharp increase in commodity prices has led around 9% average price increase in last one year. Fuel prices also touched 3 digit mark on account of Russia-Ukraine war. These had impact on cost of ownership for 2W and PV while commercial vehicles margins impacted on low freight rates.

Factors that will significantly impact demand for automobiles in F23 are:

Supply shortage of semiconductors

Policies by the Government to boost consumption

Aggressive Government push for infrastructure led growth

Increase in cost of ownership due to commodity price and fuel price increase

¦ Tractor and Farm Equipment Business

The mid to long term outlook for the Indian tractor industry is positive. The industry is seeing an upswing with harvesting of crops underway and expectations of a bumper crop this rabi season. Acreage of summer crop which is sown between Rabi and Kharif season has crossed last years level which is also promising for the farmer community.

Government budgets on infrastructure and rural development is likely to benefit commercial demand. Further, the demand for mechanisation is also growing as shortage of agricultural labour will lead to increase in labour cost. Several enabling factors supporting industry growth, like, institutional credit, consolidation of farm holdings by FPOs, etc. have shown a positive trend in the last few years. Increase in leasing of land from 10% in early 2000s to 17% in 2018-19 and Government subsidy for mechanisation will support the growth of the sector. An increasing trend of more farmers taking technical advice in agriculture, also reflects the growth of progressive farmers.

However, the past trends of the tractor industry depict a picture of strong cyclicality. Every 3-4 years growth in the industry is followed with a drop or slow-down. On an average, in the last 10 years, industry saw a growth of 56% annually and monsoon plays a critical role in defining the cyclical nature of the industry and therefore remains a key monitorable.

High international commodity prices and logistic disruptions may aggravate input costs leading to inflation. However, a normal monsoon outlook and water reservoir level better than the previous year and 10-year average will be positives for the farming sector.

As the macroeconomic tailwinds mostly remain intact for the rural economy, including the normal monsoon forecast, the expectation of a strong Kharif harvest, and improved rural income, bodes very well for the upcoming Kharif season and will support continued growth for the tractor industry.

The Central Government has set higher target for agriculture production during Kharif season on account of normal monsoon prediction and surplus seeds and fertilizer availability as per requirement.


¦ Automotive Sector

The Company is committed to build SUV brand reputation for its Authenticity and Sophistication. Launch of XUV700 and Thar has been indelibly associated with core pillars of Capability, Performance, Safety, Technology and Sophistication.

Several initiatives taken by the Government are driving higher rural incomes. Example: Higher diversification towards high value crops, expansion of non-farm income opportunities, etc. In addition, increase in allocation of

We aim to become #1 core SUV player leveraging our House of Brands - XUV, THAR, BOLERO and SCORPIO and launching 13 new products by 2027.

Your Company continues to invest in technology development and patent acquisitions.

For the year under review, your Company filed a total of 149 patent applications. Cumulatively, your Company has filed 1,740 patent applications so far.

The Companys total patent granted portfolio stands at 297 across multiple geographies and has significantly grown over last few years.

The Company is setting up a dedicated design centre in the UK to significantly enhance our design capabilities. The new Global design organisation has crafted a design vision for range of Born Electric vehicles and is giving a new dimension to amplify design of our Authentic ICE SUVs.

To complement the design vision, the Engineering team is building capability to offer technology that will set higher benchmarks in the new EV world. The range of Born EVs will be showcased to the world in the month of August 2022.

The Company is strengthening its leadership in the light commercial vehicles by revamping entire pickup range to provide significant value upgrade. This development will also help us create new segments with pickups, thereby increasing our market coverage. The escalations in fuel prices have increased acceptance of alternate fuels. Mahindra already has the widest range of CNG offerings, and concrete steps are in development to improve prices and competitiveness.

Pickups are mainstay of M&Ms market share in sub-3.5T segment and for profits. As a de-risking strategy, the Company is developing an all-new platform aimed at protecting our market share from new players in urban landscape.

BS-VI has led to disruption of small commercial vehicles (sub 2T). We are looking at projects to pivot us in new growth dimensions with higher emphasis on CNG and Electric.

The Company plans to capitalize on our strengths and the upcycle across SUVs and CVs over the next few years.

Your Company is #1 in Electric 3W segment and has been continuously developing capabilities for a successful foray in SUVs.

Of the 13 new launches, we plan to launch 8 New EVs by 2027 that will comprise 20% of our volume.

¦ Farm Equipment Sector

During the year, your Company strived to enter the next phase of growth amid heightened competition and disruption based on new technologies and trends, with farm mechanization gaining more and more traction. Going forward, Mahindra will launch new implements and farm machinery in the country through our COEs in Turkey, Finland and Japan (where M&M, over the years, has created footprints through strategic stakes and acquisitions). The objective is to bring all those products, engineered and further developed for Indian conditions and Indian prices for the Indian farmer.

The Company is also setting up a dedicated new plant at Pithampur where it plans to produce rice transplanters, potato planters and harvesters.


Your Companys Farming as a Service business (branded Krish-e) is an innovative new business vertical conceived with the idea of ushering in a new digital age of farming in India. Carrying the tag line - Expert Takneek. Naye Upay. Parinaam Dikhaye - Krish-e aims to increase farmer income through digitally enabled services, across the complete crop cycle - services that are progressive, affordable and accessible to farmers.

During the year, with a presence in 16 states, Krish-e rolled-out its 100th Krish-e centre, which hosts a range of farm equipment made available to farmers on daily rental basis, agro-chemicals (insecticides, herbicides, and fungicides), bio-fertilisers and agronomy advisory services.

To trigger changes in farmer behaviour, on-ground solutions and activities have to come together with digital ones. On-ground advisory and rental solutions deployed on Krish-e Takneek plots (demonstration plots) create empirical evidence for farmers, building trust and local relationships and make physical transactions easier.

In F22, over 13,500 Takneek plots demonstrated the positive impact of our expertise and ideas, managing to deliver an increased income of up to Rs. 15,000 per acre.

Krish-e also demonstrated its Smart Sugarcane Harvesting Technology, powered by Krish-es new state-of-the art modern harvesting technology, with the assistance of satellite technology which can enable sugar mills to predict and notify them of the right time to reap, deciding the accurate day and time, make effective use of resources, thereby eliminating expense and efforts.

During the year, your Company announced Mr. Manoj Bajpayee as new Brand Ambassador for release of Krish-e Suite of Mobile Apps - Krish-e App and Krish-e Nidaan apps with the launch of Krish-es first ever digital video commercial (DVC) film.

The Krish-e app is part of Mahindras digital foray into developing a marketplace that provides a range of services centered around mechanization and advisory. It is one of the fastest growing apps in the agriculture technology space having amassed over 3 million downloads, with the app also integrating with on-ground activities undertaken in Krish-es centers, with over 5.5 lakh farmers having seen an improvement in their income per acre of land. The Krish-e app provides scientific, field validated, and personalised crop advisory that is presented in an easy-to-follow understandable format for farmers. It offers -

Expert advisory on Sugarcane, Potato, Soyabean, Chilli and Paddy in 8 different Indian languages;

Complete advisory through various activity modules like a Crop calendar, Fertilizer calculator, and Spray calculator;

A digital diary to record all types of transactions, called Digital Khata;

Features Len-Den Diary for helping farmers keep track of their finances.

The drone industry has gone through a paradigm shift in the last few months, and we are glad that the agri industry is one of the few industries to have received approvals to operate drones for farming operations, with new Government regulations making deployment, design, development and manufacturing of drone technology easier.

In August last year, your Company through Krish-e received permissions to conduct drone-based agricultural trials and use drones for precision spraying on paddy and hot pepper crop in Telangana and Andhra Pradesh. We are already making drone services accessible and affordable through Krish-e.

During the year, your Company also increased its stake in Ag-tech startup Carnot to 68.97%, affirming its commitment to its vision of making Krish-e, Indias largest ecosystem of digital products and solutions.

Through this acquisition, Mahindra rolled-out the Krish-e Smart Kit, the smartest way to track and manage farm equipment on rent, with 15,000 Krish-e Smart Kits in the market, brought by customers, be it Mahindra or others.


Group-wide Talent Management and Development through People Conversations and Mahindra Leadership University

¦ People Conversations

The heart of the talent management process is regular and intentional conversations on talent across the group, both at a business level and at a group level. The Companys talent management process focuses on building succession strength, creating development journeys and learning interventions to attract, retain and develop top talent across the group. At the group level, this process is anchored through People Conversations (erstwhile Apex Talent Reviews) to provide an overview of talent across the group and enable talent movements across sectors basis individual strengths and aspirations. Each sector anchors talent management and talent development through the respective Sector Talent Councils.

¦ The Mahindra Leadership University

Your Mahindra Leadership University (MLU) has risen with renewed resurgence in FY22. We re-defined MLU operating model and pivoted it towards a center of excellence with its core purpose rooted in our desire to create the next generation of Mahindra leaders from within and enable them to deliver breakthrough performance.

The inputs from the People Conversations feed into the Mahindra Leadership University through which we offer flagship Leadership Development Initiatives:

We entered into a strategic alliance with Carnegie Mellon University to develop an accelerator programme (Mahindra Accelerated Leadership Track). This track seeks to identify mid career high potential talent from within that will occupy key decision making roles across our group business in the next 12 to 24 months.

We conceptualized the "Mahindra Future Shapers" programme with the intent to identify our next generation leadership pipeline and strengthen their capabilities. We have kicked off the journey to develop enterprise level senior leaders in the upcoming financial year. The programme will kick off in the first quarter of FY23 and will be strengthened through our long term strategic tie-up with Harvard University.

Mahindra Leadership Universitys performance in numbers for VITLs-

Number of programmes conducted 16 Number of learning hours 3855 Number of learners served 1331
Average Feedback 4.5 Average CAPs score 80%

Our performance in numbers for digital courses on HMM Spark -

Number of learning items completed 600,000+ Average Feedback 4.46
Number of active users 40,000+ CAPs Score 70%

Highlights of the Academies

FY22 was a remarkable year where globally, Mahindra learners started to increase their focus on functional skill development and the MLU academies rose to the occasion. We conducted several skill development initiatives during this time, a snapshot of them is as follows:

FY22 also saw the Future HR Leaders Programme, the intent is to build our future HR Heads through a process of robust leadership development and functional skill building initiatives.

The Finance academy of MLU successfully conducted 3 batches of Basics of Data Analytics for Finance. The programme helped finance leaders develop analytics skill along with finance knowledge. The best amongst this cohort will be nominated for Advanced programme.

Highlights of our Digital Learning Initiatives

It is our firm belief that orbit shifting growth happens when leaders commit to building capability at scale and Mahindra Digital Learning World is an outcome of this philosophy. From the end of the first quarter of FY22, we started introducing digital learning at scale by partnering with world class content players and delivering their courses through our LMS portal.

In a short period of time, we have seen meteoric growth. More than 40,000 users have been onboarded onto a leading content platform and in a period of 9 months they have consumed more than 600,000+ learning items. We believe this is only the beginning!

In FY23, our focus will remain on accelerating digital learning adoption by providing access to even more world class content through partnerships but also, driving personalization of learning.

Re-imagining the Nashik Campus

Our Nashik MLU campus is a world class facility built around the modern learner. With multiple Mahindra plants and offices located in a 100 km radius of this facility, the campus is generally a beehive of activity! It is detached from the hustle bustle of the city life and is surrounded by more than 650 trees, flora and fauna. Yet, because of our digital first approach to learning, our learners are always connected to the best learning resources always.

On an average, the campus hosts more than 9,000 learners each year. Furthermore, the Nashik campus has world class classroom facilities and has the ability to host more than 150 learners simultaneously. While COVID-19 significantly restricted out use of the campus, in FY22, we also prepared the Nashik campus to return back our learners to our piece of heaven.

Apart from the ongoing maintenance activities, we have now re-imagined the entire classroom experience such that it creates a seamless blended learning experience. Our digital classroom connects with learners who are sitting in Nashik, Chennai, Mumbai and/or at home such that the learning experience is not impacted. This enables us to bring them world class faculty from within our Group and outside at the touch of a button!

¦ Functional Talent Accelerators at Mahindra & Mahindra

In a diverse group like the Mahindra Group, Talent Management is crucial and critical, both from a business point of view and from a talent perspective. Technical talent accelerators are equally important to build a pipeline of business leaders.

In our quest to build a healthy pipeline of technical talent in Product Development and the related associated areas, the Company set up the Mahindra Research Valley (MRV), which serves as a crucible for innovation and technology for the Auto and Farm Divisions of the Company.

The aforesaid initiative has helped to create global sustained competitiveness and the Technical Ladder that was conceptualised in MRV is a unique way of differentiating technical talent from general management in terms of performance management, talent management and capability building. It puts a high focus on developing deep technical expertise in various systems of product development.

The Technical Ladder implementation in Mahindra has been a response to one of the biggest challenges that the Company has been facing in Talent Management. The first step of technical ladder was achieved by creating unique competencies, which combined




These were deployed in performance management discussions and capability building initiatives. Specific development goals are now integrated in Learning & Growth Plan (LGP) to facilitate capability building of niche technical skills through right exposure, and action learning projects.

The second step of technical ladder was to identify high potential technical talent and develop them into future Technology Leaders through a structured intervention. For the developmental journey, we have tied-up with best in class organizations to support in Tech Leap programme. As a result, today the Tech Ladder framework is successfully catering to more than 2,000 engineers, covering multiple COEs and Project Functions across the Automotive and Farm Divisions.

¦ Performance Management System

We have a robust performance management system built to uphold a culture of meritocracy. This new performance management system introduced last year is simple, enhances leadership and manager accountability, rewards and encourages outperformance and aims at creating a strong merit-based culture.

The performance cycle is from 1st April to 31st March with a three step process of Goal Setting, Mid-Year Review and Annual Appraisal. Feedback/development conversations between people managers and direct reports being key at every stage. A key highlight of the new performance system includes the discontinuing of overall appraisal ratings (ES, S+.., etc.). All key decisions (e.g., Promotions, Increments, Rewards, etc.) are based on the individuals Goal Sheet / Performance Score, Scores on Leadership Behaviours (4 point scale) and inputs from the Learning & Growth Plan (LGP) and discussions amongst the talent panels appropriately constituted at different levels. A key tool introduced with the new PMS is the LGP which aims at developing skills for current and future roles, and for career growth.

The overall objective of the performance management system is to ensure that there is alignment between an individuals goals and the organizations goals and priorities, thereby enabling conversations at every step of the process and actions towards enhancing accountability and providing a base for a focussed career growth. Lastly, this simple and transparent system aims not just to evaluate and reward performance but also reinforces and drives the three key Mahindra Leadership Behaviours of Collaboration, Agility and Bold - in turn driving the right culture across.

¦ Group Management Cadre (GMC)

The next step of our strategic management process is the Group Management Cadre programme to attract leadership talent at the entry level from top B-Schools of the country. This programme continues to strengthen Mahindras position as an Employer of Choice across premier B-School campuses and creates a strong talent pool to drive Mahindras future growth. Through this programme, 20 GMCs joined the Group in 2021 and 21 GMCs will be joining us in 2022 across its various Sectors and functions. As part of the Experiential Module, each GMC that joins us undergoes 4 stints of 3 months each across different functions and different businesses. The Summer Internship Programme has evolved over the years as a critical source of the GMC talent pool and this year we have 24 students who have joined us from the top B-school of India under the GMC Summer Internship Programme 2022.

¦ Group Diversity Council (GDC)

Diversity and Inclusion

The Group continues its strong focus on fostering Diversity and Inclusion (D&I) at the workplace with the D&I Vision of -

We value and celebrate the uniqueness of every individual by fostering an environment of inclusion and empowerment. This we believe enables us to meet the needs of our stakeholders through active participation of diverse talented individuals.

We have been working with wider involvement across the organization, seeking inputs and deriving insights to drive the objectives of D&I and to continue our journey of becoming a more inclusive workplace. As a culmination of this exercise, a new D&I Charter is being created which will be rolled out in the next quarter of FY22.

During the year, we have also revisited our people policies related to D&I with an objective to make it simple and contemporary. We expect these policies to help us build more inclusive culture going forward.

Our special focus has been to improve gender diversity in areas of technology and business operations which is also going to be thrust area for the Company.

¦ Equal Opportunity Policy

M&M provides equal opportunity to all persons. There is no unfair treatment in relation to the employment, promotion or other related issues or terminate the employment for reasons of gender or disability. Under this policy, we provide necessary training to the new recruits to enable them to carry out their jobs effectively.

M&M works towards attracting, retaining, and developing diverse talent through initiatives such as:

FOCUSSED HIRING Structured hiring programmes to attract and recruit diverse talent through mindful and positive communication as well as deeper engagement channels. Our focus is women and PwD hiring and support, which is done through specialized hiring consultants while maintaining our core philosophy of meritocracy.

TALENT MANAGEMENT Prioritizing career development of women at all levels with access to senior leaders alongside opportunity to develop new skills. Specific programmes like Hi-potential Women mentoring for broadening capabilities of the women employees make them ready for leadership roles.

For managerial band, women mentoring programme was launched to enable career guidance and coaching from senior leaders.

The Group has also signed up for World Economic Forums "Valuable 500" initiative under which it has taken commitment to raise awareness about disability with the objective of creating a fair and accepting inclusive environment and for promoting the inclusion of persons with disability as a part of the diverse workforce.

¦ Prevention of Sexual Harassment at Workplace (POSH)

Awareness in this area has been created through a Speak Up campaign with focus on reiterating Mahindras commitment for providing safety at the workplace for all its employees. The Company has also organised induction training for new joiners, online training and refresher modules, virtual and classroom trainings through our Ethics Counsellors, emailers and posters to sensitise the employees to conduct themselves in a professional manner.

¦ Transformational Work Culture

The Transformational Work Culture initiative that aims to create an engaged workforce with an innovative, productive and a competitive shop-floor ecosystem, continues to grow in strength. Some of the initiatives towards the same that are worth mentioning here are:

Creating a culture and ecosystem of selfmanaged teams.

Mindset transformation programme named Nayi soch - Naya dristikon for cell members and union leaders.

ER Samriddhi programme for line managers.

Skill building with a focus on future skills and digitization.

Critical attribute training for associates.

Rise award for associates.

Employee of the year programme for associates.

Trainings on ethical behaviour, Code of Conduct and Human Rights.

Further, in an endeavor to improve quality, reduce cost, ensure safety and improve productivity, our Companys shop floor associates generated an average of 10 ideas per person during the year.

To develop skills and foster togetherness at the workplace, multiple training and engagement programmes were rolled out covering a wide range of topics.

¦ Industrial Relations

The year under review witnessed a very positive Industrial Relations scenario across all manufacturing locations for the Automotive and Farm Equipment Sectors. The Company amicably concluded LTS for 8 plants, which were due with an increase in productivity ranging between 8.25-11.1%, while the wage increase is given keeping the regional parity and industry benchmark. These LTS will remain valid for 3.5 years from date of signoff.

The Companys focus continues towards propagating proactive and employee centric practices. Bonus settlements were amicably agreed upon at all locations.

The sustained efforts towards building a transformational work culture resulted in zero production loss in the last financial year and helped create a collaborative, healthy and productive work environment.

¦ Open Door Policy

Proactive and employee-centric shop floor practices, a focus on transparent communication of business goals, an effective concern resolution mechanism, and a firm belief that employees are the most valuable assets, are the cornerstones of the Companys employee relations approach. An open door policy with constant dialogue to create win-win situations, have helped build trust and harmony.

¦ Mahindra Skill Excellence

The Mahindra Skill Excellence is an internal platform that aims at holistic skill enhancement programme for the shop floor associates. Over the years it has matured and in the current year 2,800 associates have participated from across all its manufacturing units.

In continuation of the earlier achievements, this year also, one of our employees has been adjudged with a silver medal at the National Skill Competition and a couple of employees of our Dealerships based in Nagpur and Wayanad have also received medals in the same skill.

¦ A Healthy Work Environment

Significant emphasis was laid on improving health and wellness of employees through annual medical check-ups, screening camps, health promotional activities and awareness. Balanced nutritious food has become a way of life at Mahindra over the past few years.

The Company maintains an Employee Health Index at an individual level and this has been a useful tool in identifying employees who require focussed counselling and monitoring. The Wellness App is available to employees for quick access to critical health related information.

During the unprecedented COVID-19 pandemic, the organization has reacted promptly to the health concerns of employees. Our employees health has always been the Companys priority.

Various awareness sessions on driving employees towards a healthy and better lifestyle, Post Covid care, emotional wellbeing, Mindfulness, etc. were touched upon by experts during the exclusive sessions for employees and their family members. Health and Wellness always remained priority of the Companys philosophy.

The Company had a total of 21,297 permanent employees on its rolls as on 31st March, 2022.


Your Company maintains adequate internal control systems commensurate with the nature of its business and size and complexity of its operations. These are regularly tested for their effectiveness by Statutory as well as Internal Auditors. Your Companys Internal Financial Controls are deployed through the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO), that addresses material risks in your Companys operations and Financial reporting objectives.

The framework is a combination of entity level controls (including Enterprise Risk Management, Legal Compliance Framework, Internal Audit and Anti-Fraud Mechanisms such as Ethics Framework, Code of Conduct, Whistle Blower Policy, etc.), process level controls, information technology based controls, period end financial reporting and closing controls.

Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. In the highly networked IT environment of the Company, validation of IT Security receives focussed attention from IT specialists and Statutory Auditors.

The Chief Internal Auditor reports administratively to the Chairman of the Board and functionally to the Audit Committee. The Internal Audit function develops an audit plan for the Company, which covers, inter alia, corporate, core business operations, as well as support functions. The Audit Committee reviews the annual internal audit plan. Significant audit observations are presented to the Audit Committee, together with the status of the management actions and the progress of the implementation of the recommendations.

The Audit Committee reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations. During the year, the Company has taken steps to review and document the adequacy and operating effectiveness of internal controls. Nonetheless, your Company recognises that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis.

Your Companys Management has carried out the evaluation of design and operative effectiveness of these controls and noted no significant deficiencies/material weaknesses that might impact financial statements as at the Balance Sheet date.


¦ Overview

The financial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (the Act) and other relevant provisions of the Act.

The Groups consolidated financial statements have been prepared in compliance with Ind AS 110 on Consolidation of Accounts and presented in a separate section.


¦ Property, Plant and Equipment and Intangible Assets

As at 31st March, 2022, the Property, Plant and Equipment and Intangible Assets stood at Rs. 19,567 crores as compared to Rs. 18,137 crores as at 31st March, 2021. During the year, the Company incurred capital expenditure of Rs. 3,247 crores (previous year Rs. 3,385 crores). The major items of capital expenditure were on new product development and capacity enhancement.

¦ Borrowings

(Rs. in crores)

Borrowings F22 F21 Inc./(Dec.)
Long-term borrowings 5,678 6,990 (1,312)
Short-term borrowings 812 673 139
Unclaimed matured deposits 0.1 0.1 0.0
Total 6,490 7,663 (1,173)

Borrowings have decreased from Rs. 7,663 crores in the previous year to Rs. 6,490 crores in the current year mainly due to repayments in the current year.

¦ Inventories

F22 F21
Raw materials and bought out components as a % of cost of materials consumed 6.1% 6.9%
Finished goods and Stock-in-trade as a % of sales of products 5.1% 5.4%

The decrease in raw materials and bought out components as a percentage of cost of materials consumed and decrease in finished goods and stock-intrade as a percentage of sales of products has been mainly


(Rs. in crores)




Amount % Amount % %
Sales of products 55,210 96.1 42,702 95.7 29.3
Sale of services 1,126 2.0 1,012 2.3 11.4
Other operating revenue 1,110 1.9 916 2.0 21.2
Revenue from operations 57,446 100.0 44,630 100.0 28.7
Other income 2,076 3.6 1,199 2.7 73.1

¦ Revenue from Operations & Other Income

Sales volume in Auto segment witnessed an increase of 30.7% clocking vehicles 4,55,570 in the current year from 3,48,621 vehicles in the previous year. Increase in volumes combined with higher realisation led to Revenue from operations growing by 28.7% as compared to the previous year.

Other income during the year ended 31st March, 2022 at Rs. 2,076 crores is higher than Rs. 1,199 crores earned in the previous year mainly on account of higher dividend income in the current year as compared to previous year.

(Rs. in crores)




Amount % to Revenue from Operations Amount % to Revenue from Operations %
Material costs 42,342 73.7 30,177 67.6 40.3
Employee benefits expense 3,306 5.7 3,252 7.3 1.7
Finance costs 223 0.4 396 0.9 (43.7)
Depreciation, amortisation and impairment expense 2,451 4.3 2,370 5.3 3.4
Other expenses 4,756 8.3 4,244 9.5 12.1
Total expenses 53,078 92.4 40,439 90.6 31.3

¦ Expenditure

The total expenditure during the year as a percentage of revenue is 92.4% as compared to 90.6% in the previous year. The increase is mainly attributable to higher material costs in FY22.

¦ Material cost

The material cost as a percentage of revenue has increased from 67.6% in the previous year to 73.7% in the current year mainly on account of elevated levels of inputs costs and supply side challenges witnessed during FY22.

¦ Employee benefits expense

The personnel cost as a percentage of revenue from Operations has decreased from 7.3% in the previous year to 5.7% in the current year mainly due to the higher revenue base in the current year.

¦ Other expenses

Other expenses as a percentage of revenue from Operations have decreased from 9.5% in the previous year to 8.3% in the current year mainly on account of stringent cost control measures adopted by the Company coupled with higher revenue base in the current year.

¦ Depreciation, amortisation and impairment expense

Depreciation, amortisation and impairment expenses as a percentage of revenue shows decrease over the previous year mainly due to higher revenue base in current year.

¦ Finance costs

The interest expense as a percentage of revenue has decreased from 0.9% in the previous year to 0.4% in the current year mainly on account of repayment of borrowings in current year and higher interest capitalisation.

¦ Exceptional Items

Exceptional items in the current and previous year comprises of profit earned on sale of certain long-term investments partly offset by impairment of certain investments in subsidiaries, associates and joint ventures.

¦ Tax expense

The provision for current tax and deferred tax for the year ended 31st March, 2022, as a percentage to profit before tax (before exceptional items) is lower than the previous year mainly on account of higher dividend income in FY2021-22 as compared to FY2020-21.

The key financial ratios of the Company are given as below:



FY2022 FY2021
Debtors Turnover (times) 21.5 17.1
Inventory Turnover (times) 7.9 6.8
Interest Coverage Ratio (times) 17.6 12.7
Current Ratio (times) 1.4 1.3
Debt Equity Ratio (times) 0.17 0.22
Operating Profit Margin (%) 12.3% 15.6%
Net Profit Margin (%) 8.6% 2.2%
Return on Net Worth (%) 13.4% 3.0%

Explanations for variation of 25% or more in Key Financial Ratios:

Debtors Turnover: The debtors turnover ratio improved to 21.5 in FY 2021-22 as against 17.1 in the previous year primarily due to better collection efforts and significant improvements in credit management process across divisions.

Interest Coverage Ratio: The interest coverage ratio is healthier at 17.6 in FY 2021-22 as against 12.7 in the previous year primarily due to decrease in finance cost resulting from repayment of borrowings during the year.

Net Profit margin: The net profit margin (after exceptional items) improved to 8.6% in FY 2021-22 as against 2.2% in the previous year primarily on account of increase in operation performance, lower impairment losses on investments, higher gain on sale of long-term investment, lower tax expenses for the year.

Return on Net Worth: The Return on Average Net Worth has improved from 3.0% in the previous year to 13.4% in the current year on the base of higher profit for the year.


As on 31st March, 2022, for the purpose of consolidation as per Indian Accounting Standards (Ind AS), the Group comprised of the flagship holding company

The Consolidated Groups Operating Revenue from continuing operations is Rs. 90,171 crores in the current year as compared to Rs. 74,278 crores in the previous year

i.e. an increase of 21.4%.

The consolidated profit before exceptional items and tax for the year from continuing operations is Rs. 7,092 crores as compared to Rs. 5,229 crores in the previous year i.e. an increase of 35.6%. The consolidated profit after tax after non-controlling interest and exceptional items from continuing operations is Rs. 6,577 crores as against Rs. 3,347 crores in the previous year i.e. an increase of 96.5%.

The consolidated profit after tax after non-controlling interest and exceptional items for the year from continuing and discontinued operations is Rs. 6,577 crores as against Rs. 1,812 crores in the previous year i.e. an increase of 263%.

Tech Mahindra Limited, Flagship Company in the IT Sector, has reported a consolidated operating revenue of Rs. 44,646 crores in the current year as compared to Rs. 37,855 crores in the previous year, an increase of 17.9%. Its consolidated profit after tax after non-controlling interests is Rs. 5,566 crores as compared to Rs. 4,428 crores in the previous year, an increase of 25.7%.

The Groups finance company, Mahindra & Mahindra Financial Services Limited, a listed subsidiary of the Company (Mahindra Finance), reported a consolidated operating income of Rs. 11,318 crores during the current year as compared to Rs. 12,111 crores in the previous year, a decrease of 6.5%. The consolidated profit after tax after non-controlling interests for the year is Rs. 1,137 crores as compared to Rs. 773 crores in the previous year, registering an increase of 47.1%. Mahindra Finance customer base has crossed 7.9 million customers and currently has a network of over 1,384 offices.

Mahindra Lifespace Developers Limited, the listed subsidiary in the business of real estate and infrastructure, registered a consolidated operating income of Rs. 394 crores as compared to Rs. 166 crores in the previous year, registering an increase of 137.3%. The consolidated profit after tax after non-controlling interest for the year is Rs. 154 crores as compared to a loss of Rs. 72 crores in the previous year, registering an increase of 313.9%.

Mahindra Holidays & Resorts India Limited, the listed subsidiary in the business of timeshare, registered a consolidated operating income of Rs. 2,013 crores as compared to Rs. 1,730 crores in the previous year i.e. an increase of 16.4%. The consolidated profit after tax after non-controlling interests for the year is Rs. 68 crores as compared to a loss of Rs. 13 crores in the previous year, registering an increase of 623.1%.

Mahindra Logistics Limited, a listed subsidiary in the logistics business, has registered a consolidated operating income of Rs. 4,083 crores as compared to Rs. 3,264 crores in the previous year i.e. an increase of 25.1%. The consolidated profit after tax after non-controlling interests for the year is Rs. 37 crores as compared to Rs. 30 crores in the previous year, registering an increase of 23.3%.

Ssangyong Motor Company, the Korean subsidiary of the Company (under the Companies Act, 2013), treated as discontinued operation for the purpose of consolidation in previous year, has reported consolidated operating revenues of Rs. 15,499 crores in the current fiscal year* as compared to Rs. 18,763 crores in the previous fiscal year*. The consolidated loss after tax after non-controlling interests for the current fiscal year* is Rs. 1,646 crores as compared to a consolidated loss of Rs. 3,208 crores in the previous fiscal year*.

*Fiscalyear-January to December

¦ Segment Results from continuing operations (before exceptional item)

The results achieved by major business segments of the Group are given below:

(Rs. in crores)

Segments FY2022 FY2021
1. Automotive 1,254 736
2. Farm Equipment 3,891 4,158
3. Financial Services 1,404 538
4. Hospitality 99 (26)
5. Real Estate (81) (99)
6. Others 665 278
7. Eliminations 20 5
Total 7,252 5,590

¦ Disclaimer

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forwardlooking statements" within the meaning of applicable securities laws and regulations.

Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.