M & M 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 2022-23, your Company sold 6,98,456 vehicles (a growth of 50% over the previous year) and 4,07,545 tractors (under the Mahindra, Swaraj and Trakstar brands, a growth of 14.9% over the previous year). These are the highest ever vehicle sales and tractor sales in any year by the Company.

The Automotive and Farm Sectors, along with their subsidiaries, associate companies and joint ventures, achieved global sales of 1.12 million vehicles and tractors (6,97,494 vehicles and 4,24,276 tractors), a growth of 33.6% over the previous year.



In Calendar Year 2022, worldwide sales of Passenger Cars and Commercial Vehicles increased to 81.6 million, a de-growth of 1% over the Calendar Year 2021 sales of 82.7 million. Global Passenger Car sales reported a growth of 1.9% and Commercial Vehicle sales reported a de-growth of 8.3%. The global auto industry is still recovering from COVID-19 impact and is down by 11% from an alltime high in 2017. India has achieved 3rd rank behind China and the United States of America in the segments for passenger and commercial vehicles together.

The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 58% CAGR over the last five years. Annual global EV sales stand at 7.1 million which is 12.4% of total PV sales, as compared to just 1% five years back.

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 during the period between F19 - F23, as compared to the previous ten-year period of F09 - F19. Exports from India too have been impacted in this period.

Segment CAGR F09-F19 CAGR F19-F23
PV (Domestic Sales) 8.1% 3.6%
CV (Domestic Sales) 10.1% -1.1%
Domestic Sales (Excl. 2W) 8.3% 1.2%
PV (Export) 7.3% -0.5%
CV (Export) 8.9% 0.7%

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 where meeting BS-VI in 3 years is an example. In F23, the industry has implemented BS6.2 emission norms in the country. The Government of India (GOI) has notified Electric vehicle technology and Hydrogen fuel cell technology as advanced automotive technology under PLI (Production Linked Incentive) Scheme. The GOIs ambitious scheme to expedite the adoption of electric vehicles - Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME Phase II)-has been extended by 2 years i.e. up to 31st March, 2024.

The Government of India 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 focused on building capabilities in the EV space.


In Financial Year 2022-23, the Indian auto industry has shown double digit growth across all segments. Passenger vehicles have reached new highest ever mark with 3.89 million sales units while commercial vehicles are still below F19 levels by 4.5%. Indian auto industry sales (excluding two-wheelers) have recorded highest ever sales of 5.3 million units with 15.7% YoY growth.

As a result, the industry volume of two-wheelers and three-wheelers are showing slower recovery and are still down by 25.1% and 30.3% compared to F19 levels.

Over the ten years between F13 and F23, the Utility Vehicle (UV) segment has witnessed a good growth of 13.7% CAGR. UV, as share of PV, has increased from 13.8% in F12 to 51.5% in F23.

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 (F22 - F23), there were 18 new launches in the UV segment, and these accounted for 8% of UV volume in F22-23. For the year F23, compact UVs accounted for 50% of UV volume.

We believe that electric vehicle adoption in India would be led by e-3^V; the key drivers being improving operating economies, easy deployment for last/first mile connectivity (including at metro stations) and the growth of startups as 3^V aggregators. For the year F23, a total of 65,059 e-3W were sold, accounting for 8.5% of the 3^V industry.

Industry Segment

Domestic Industry Volume

YoY Growth

F21 F22 F23 F21 F22 F23
Passenger Cars 15,41,866 14,67,039 17,47,376 -9.1% -4.9% 19.1%
Utility Vehicles 10,60,750 14,89,219 20,03,718 12.1% 40.4% 34.5%
MPV (Vans) 1,08,841 1,13,265 1,39,020 -17.6% 4.1% 22.7%
Passenger Vehicles 27,11,457 30,69,523 38,90,114 -2.2% 13.2% 26.7%
MHCV 1,60,688 2,40,577 3,59,003 -28.4% 49.7% 49.2%
MHCV Passenger 7,322 11,804 38,410 -81.7% 61.2% 225.4%
MHCV Goods 1,53,366 2,28,773 3,20,593 -16.8% 49.2% 40.1%
ICV Goods (7.5 to 12T) 27,962 34,822 35,298 -32.1% 24.5% 1.4%
MCV Goods (12 to 18.5T) 37,402 51,835 68,187 -7.3% 38.6% 31.5%
HCV Goods >18.5T 88,002 1,42,116 2,17,108 -14.5% 61.5% 52.8%
LCV 4,07,871 4,75,989 6,03,465 -17.3% 16.7% 26.8%
LCV Passenger 12,088 19,957 44,315 -73.6% 65.1% 122.1%
LCV Goods < 2T GVW 1,40,109 1,71,461 1,92,982 -21.8% 22.4% 12.6%
LCV Goods 2-3.5T GVW 2,25,658 2,51,944 3,31,655 -2.6% 11.6% 31.6%
LCV Goods > 3.5T GVW 30,016 32,627 34,513 -17.4% 8.7% 5.8%
Total CV 5,68,559 7,16,566 9,62,468 -20.8% 26.0% 34.3%
3W Passenger 1,35,414 1,73,356 3,61,094 -74.2% 28.0% 108.3%
3W Goods 84,032 76,174 97,540 -24.7% -9.4% 28.0%
3W-e-Rickshaw - 10,580 26,654 NA NA 151.9%
3W-e-Cart - 1,275 3,480 NA NA 172.9%
3W 2,19,446 2,61,385 4,88,768 -65.6% 19.1% 87.0%
Scooters 44,82,305 41,12,672 51,90,018 -19.5% -8.2% 26.2%
Motorcycles 1,00,21,231 89,84,186 1,02,30,502 -10.6% -10.3% 13.9%
Mopeds 6,17,247 4,73,150 4,41,567 -3.1% -23.3% -6.7%
2W 1,51,20,783 1,35,70,008 1,58,62,087 -13.2% -10.3% 16.9%
Quadricycle -12 124 725 -101.3% 1133.3% 484.7%
Total Domestic 1,86,20,233 1,76,17,606 2,12,04,162 -13.6% -5.4% 20.4%
Total Domestic (Excl. 2W) 34,99,450 40,47,598 53,42,075 -15.2% 15.7% 32.0%


The long-term growth outlook for the Indian tractor industry remains positive. Over the period F07 to F23, the domestic tractor industry grew at a CAGR of 6%. The key growth drivers were increasing affordability, growing demand for farm mechanisation, emergence of newer technologies in the farming sector, and continued focus of Government on improving the state of agriculture in India.


Indian tractor industry with an annual sale of 9.45 lakh unit in F23, recorded its highest ever annual sales. The year saw a growth of around 12.2% over F22. However, exports dropped by ~3% YoY and can be partly attributed to high base of last year when the industry witnessed steep growth of around 45% YoY.

Amidst several disruptions in the global agricultural commodity market, Indian agriculture stood strong and resilient. Positive gains were witnessed with rising crop prices, adequate rainfall in most part of the country supported crop output. The rural sentiments remained buoyant during the peak sowing months, with significant surge in GoI spending in rural sector during the Rabi sowing months and continued focus to institutionalise agriculture credit. 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 F23 as raw material and labour shortage which affected the industry in the previous years, saw normalisation.

Your Companys share in Domestic Tractor Industry stood at 41.2% in F23.



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

Industry Segment



M&M Market Share

F23 Growth F23 Growth F23 F22
Utility Vehicles 20,03,718 34.5% 3,56,961 59.6% 17.8% 15.0%
Passenger Cars 17,47,376 19.1% 214 262.7% 0.0% 0.0%
MPV (Vans) 1,39,020 22.7% 2,078 -3.5% 1.5% 1.9%
Passenger Vehicles 38,90,114 26.7% 3,59,253 59.0% 9.2% 7.4%
LCV Goods < 2T GVW 1,92,982 12.6% 40,419 26.2% 20.9% 18.7%
LCV Goods 2-3.5T GVW 3,31,655 31.6% 1,98,121 42.9% 59.7% 55.0%
LCV Goods < 3.5T 5,24,637 23.9% 2,38,540 39.8% 45.5% 40.3%
LCV Goods > 3.5T GVW 34,513 5.8% 1,959 11.9% 5.7% 5.4%
LCV Goods Total 5,59,150 22.6% 2,40,499 39.5% 43.0% 37.8%
M+ICV Goods (7.5 to 18.5T) 1,03,485 19.4% 1,657 46.0% 1.6% 1.3%
HCV Goods > 18.5T 2,17,108 52.8% 4,742 39.1% 2.2% 2.4%
MHCV Goods 3,20,593 40.1% 6,399 40.8% 2.0% 2.0%
LCV Passenger 44,315 122.1% 1,678 1090.1% 3.8% 0.7%
CV Passenger 44,315 122.1% 1,678 1090.1% 3.8% 0.7%
CV Total 9,24,058 31.1% 2,48,576 40.3% 26.9% 25.1%
3W 4,88,768 87.0% 58,520 94.6% 12.0% 11.5%
Total Domestic 53,02,940 31.4% 6,66,349 53.9% 12.6% 10.7%

In F23, your Company launched the Scorpio-N, which is built on the new third-generation body-on-frame platform. It offers a disruptive customer- value proposition with its unmissable presence, spirited performance, sci-fi technology and world-class safety. It is also one of Indias safest vehicles, having received a 5-star safety rating from Global NCAP, and has garnered 24 awards from the media and auto community. The launch recorded 1,00,000 bookings for the All-New Scorpio-N within 30 minutes of the booking commencement and also recorded 25,000 bookings within one minute of the booking commencement.

Your Company also launched the Scorpio Classic, the new avatar of its iconic brand Scorpio. Over 20 years, the Scorpio has attained legendary status and has represented the tough and authentic DNA of your Companys SUVs. The Scorpio Classic, which retains the silhouette of the original Scorpio, now offers a refreshed design, enhanced performance, improved ride quality and built-in technology.

In August 2022, your Company announced the Born Electric Vision, which aims to bring electric offerings to the Companys portfolio. On 15th August, 2022, your Company unveiled five electrifying SUVs under two brands based on the Born Electric INGLO platform at the M.A.D.E Design Studio in the UK. The manifestation of these two brands has been showcased via five e-SUVs: the XUV.e8, XUV.e9, BE.05, BE.07, and BE.09. The first four of these are planned to be launched between 2024 and 2026.

Later, in February 2023, your Company unveiled the Rall-E concept at the EV Fashion Festival in Hyderabad during Indias 1st Formula E race weekend and celebrated the first showcase in India for the BE.05 and XUV.e9.

The event showcased the Companys commitment to electric mobility and its plans to launch a new range of electric SUVs in the Indian market.

Your Company took the wraps off the fun and fast XUV400 electric SUV on the eve of World EV Day - 9th September, 2022. The XUV400 is the first EV from your Company to feature the copper-finish Twin Peaks logo, giving it a distinctive presence on the road. Launched on Republic Day 2023, the XUV400 recorded over 10,000 bookings on the Extended Republic Day Weekend. The XUV400 is built on the tough GNCAP 5-star rated XUV300 platform and is the widest C- segment SUV, offering occupants class-leading safety and comfort.

The XUV400 powered by a high-capacity 39.4 kWh lithium-ion battery, delivers an anxiety-free range of 456 kilometers as per Indian driving cycle standards (Modified Indian Driving Cycle [MIDC]).

In January 2023, your Company introduced an all-new range of the Thar, making it accessible to a wider range of thrill-seekers. Additionally, in March, your Company announced a production milestone of 1,00,000 units for the All-new Thar.

All the new launches, product updates, and Future EV Vision announcement have successfully helped your Company to maintain No. 1 Position in Brand Power in F23.

Your Companys Bolero SUV has crossed the 1 lakh mark in sales in F23, marking a significant milestone. Also, since its introduction in 2000, the Bolero has sold over 14,00,000 units across India.

Your Company has retained No. 1 position in LCV <3.5T segment which is largest segment of CV industry for the nine consecutive years with 45.5% market share. LCV <3.5T goods account for 55% of the total CV industry.

In the Pickup sub-segment (LCV goods 2 to 3.5T), your Company sold 1,98,121 vehicles, a growth of 42.9% over the previous year. Your Companys market share in the pickup segment stands at 59.7% compared with 55% over last year. 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 August, 2022, your Company launched the Bolero Maxx Pik-Up City 3000, a new brand of futuristic pickups catering to the transport and logistics needs of modern India. The launch of the Bolero Maxx Pik-Up marked a significant milestone in the light commercial vehicle (LCV) segment, as it came with advanced connected technology - iMaXX telematics solution, segment leading comfort and safety, several enhanced features, power, maximum payload capacities and higher mileage. Your Company also updated the Bolero Pik-Up range with Bolero Maxx Pik-Up range in April, 2023.

In <2T segment, the Company sold 40,419 vehicles, a growth of 26.2% over the previous year. The Companys market share grew by 2.3% over last year and stands at 20.9% in <2T segment. In August, 2022, your Company launched the New Jeeto Plus CNG CharSau, an addition to its existing Jeeto Plus range that promises to set new standards in fuel efficiency and mileage.


Your Companys Chakan Plant produced highest ever 2.5 lakh vehicles in F23 and crossed 16 lakh vehicles since inception. The Haridwar Plant Crossed 13 lakh vehicles since inception and crossed 50,000 vehicles milestone of e-Alfa Platforms in F23.


In the Last Mile Mobility (LMM) segment, your Company sold 58,626 passenger and goods three-wheelers, a growth of 94%, with a market share of 12% in F23 vs 11.5% in F22. Your Company has a wide range of offerings inclusive of electric, CNG, diesel and petrol products with the latest addition being the all-new cargo electric three-wheeler Zor Grand electric. The Zor Grand is superior in performance, mileage, and overall earning potential, and has been widely accepted by customers across the country. The unwavering trust in the Mahindra Zor Grand has been enabled by strong in-house competencies in the areas of battery, motor and telematics backed by rigorous validation and experience of putting more than 50,000+ three-wheeler EVs on the road.

Your Company is the pioneer for Electric Vehicles (EVs) in India, and for the year under review, sold 46,109 EVs (2,416 four wheelers and 43,693 three wheelers) as against 17,006 EVs (61 four wheelers and 16,945 three wheelers) in the previous year. Your Company is committed to achieve sustainability targets with strong growth plan and lead the EV revolution from the front.


Your Company recorded phenomenal growth of 56% over last year achieving 10,036 volumes. The Q4 F23 resulted in EBDITA positive for your Company. Your Company launched the CRUZIO range of Buses which was declared as CV-Staff Bus Of The Year at Apollo CV Awards 2022.


In the Construction Equipment industry in the Backhoe Loader segment, your Company sold 1,424 machines, a growth of 50% over the previous year. Your Company launched the New Grader Smart G75, which helped your Company to become No. 2 player in Motor Grader with 21.3% (+9%) market share. Your Company saw 90% improvement in EBDITA with 3 quarters ending up with positive EBDITA.


The Automotive Sector of your Company exported a total of 32,107 vehicles in F23, becoming the No. 1 CV Exporter (as per SIAM definition) in India for the year. Growth in regions of Africa, ANZ and Middle East offset the impact of headwinds from South Asia. The subsidiaries in South Africa and Australia delivered a growth of over 50% in retail and stood among the fastest growing brands in their respective countries.

Your Company took its SUVs, XUV700 and Scorpio-N to global markets ~with launches in South Africa, Australia, Ne,w Zealand and Nepal. ^Vith improved product mix of the global portfolio, your Company delivered export revenue growth over last year.

Your Company continues to enhance its presence and participation in global markets with its range of SUVs and commercial vehicles. Your Company is among the top 5 brands in South Africa in the pickup segment by volume and market share.


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

For the period under review, your Company sold a total of 4,07,545 tractors (domestic plus export), under the Mahindra, Swaraj and Trakstar brands, against 3,54,698 tractors sold in the previous year, registering a 14.9% growth.

Your Company sold 3,89,531 tractors, as compared to 3,37,052 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), growing by 15.6%, as against the industry growth of 12.2%. The year marks the highest ever tractor volumes sales achieved by your Company.

Farm Mechanisation is an important enabler to address the concerns of farm productivity and farm labour shortage. Your Company has aggressive plans to grow its Farm Machinery business, through launch of Made in India farm machinery products. These include rotary tillers, harvesters and rice transplanters amongst others.

During the year, Mahindra Farm Machinery clocked highest ever revenue ¦with YoY 40% growth. This growth was driven by record performance in rotary tillers where your Company achieved 2nd position by market share. Additionally, threshers and superseeder have grown significantly to achieve record volume in F23.

During the year, your Company launched new Heavy Rotavator and Supervator which helped the volumes grow significantly. Your Company has also improved Wheel Harvester attractiveness through technology and emission upgrades.

CODE (multi-purpose farm mechanisation solution to transform horticulture farming), was launched in F22 by Swaraj Tractors and has grown significantly in F23 and contributed to the strong performance.

Additionally, during the year, your Company completed acquisition of MITRA Agro Equipments Private Limited (M.IT.R.A) by increasing its shareholding from the existing 47.33% to 100%, making it a wholly owned subsidiary of the Company. This acquisition will strengthen our Farm Machinery product portfolio with spraying solutions.

The Company has set up a dedicated new plant at Pithampur spread over 23 acres with a capacity to manufacture 1,200 combine harvesters and 3,300 rice transplanters per year.

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,

Other enablers like Financing,

Digitisation and Service Quality.


For the year under review, your Company achieved a record of the highest ever volume and revenue by exporting 18,014 Tractors.

This growth can be attributed to higher retails in several markets where your Company has distribution operations including the USA, Brazil, Bangladesh, Australia and various African markets like Mali, Tanzania. The Company has also made significant growth in business through tenders and bulk orders from markets like Benin, Kenya, Guyana, etc.



Under the Powerol brand, your Company has been a leader in providing power back-up solutions to the telecom industry for more than 15+ 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 CPCB 4+ for gensets, Powerol is gearing up for the transition.

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 15kVA to 315kVA. They offer lower operating costs and low emissions complying to the new emission norms.

Powerol has also initiated EV Charger business for Home Charger Installations. The rising demand of electricity will be a boom for the energy sector in near future. This is an opportunity for the Company to grow its offerings into energy solution business.


During the year under review, your Company (under the Mahindra EarthMaster brand) sold 989 Backhoe Loaders (BHLs), a 36% increase from 729 sold in F22. 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 188 motor graders, a 61% increase from the 117 sold in F22.

Your Company also has a presence in the Sugar Cane Haulage market (under the Mahindra HaulMaster brand) in the export market. For the year under review, your Company sold 247 Haulage Tractors, a 135% increase from the 105 sold in F22. The BHL industry grew by 28% and the motor grader industry grew by 42% due to increased focus from the Government of India on infrastructure.


In line with the strategy for the two-wheeler business, your Company through its subsidiary, Classic Legends Private Limited (CLPL) had reintroduced the iconic brand Jawa to the Indian market in F19, with the launch of new range of JAWA motorcycles - Jawa and Jawa Forty- Two and strengthening of portfolio by adding Yezdi in F22. During F23, 42 Bobber was introduced to the Indian market and in addition, CLPL forayed into international market by introducing iconic British brand BSA in UK and European market.



Indian automotive industry has been christened as a sunrise sector and champion industry due to the immense contribution the industry makes to the Indian economy. The automotive industrys turnover is 7.1% of Indias GDP and 49% of manufacturing GDP.

In F23, the Indian auto industry has shown double digit growth across all segments. Passenger vehicles have reached new highest ever mark with 3.89 million sales units while commercial vehicles are still below F19 levels by 4.5%. Indian auto industry sales (excluding two- wheelers) have recorded highest ever sales of 5.3 million units with 15.7% YoY growth. Partial recovery of Auto Industry was principally

a result of supply shortage of semiconductors in first half of F23 and time taken for rural recovery compared to pre-pandemic.

To reduce dependence on oil imports, the industry is exploring options of alternate fuels like CNG, LNG, Ethanol, etc. The industry is also exploring options of flex fuel vehicles in the near future. The industry is also investing in next generation technologies like electric vehicles and hydrogen.

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.


To drive sustainable growth in the agriculture sector, strong Government focus on its development has led to increased adoption of mechanisation and modern agricultural practices, along with rural development at large.

However, 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.


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.




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.


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. The industry has seen shift in demand from cars to UVs. This has led to more number of launches in UVs compared with cars.

LCV Goods < 3.5T now accounts for 55% of total CV sales in F23 vs 51% in F19 and 44% in F16. Industry < 3.5T has recovered to F19 level driven by 2-3.5T sales. The industry has crossed 5 lakh mark after 4 years. 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, increasing channel reach, while focussing on delivering customer centric products, services and brand building.


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, Thar and KUV100. XUV400 attracts minimum GST among all passenger vehicle categories.


The Company has successfully transitioned to BS6 phase 2 emission norms across all its portfolio products well in time. In its commitment to improve fuel efficiency and reduce the overall carbon footprint (CAFE 2), the Company has adopted advanced combustion technologies and right product level electrification strategy.

In India, the emission standards for tractors and construction equipment are regulated separately from the broader automobile industry.

India remains a medium-to-high HP tractor market, with over 80 per cent of sales coming from the 30-50 HP categories. The revised emission norms - TREM IV applicable only to tractor over 50 HP from January 2023, have impacted around 7-8 per cent of the overall industry volumes. To meet the challenges associated with TREM IV, your Company has realigned its product portfolio, through the launch of new products, along with upgrades of existing ones.


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.


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 meet any legislative requirements. Along with Electrification, your Company is also working on alternate fuels technology.


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 fleet 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. Along with Electrification, your Company is also working on alternate fuels technology.


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 F24, the Indian Meteorological Department (IMD) in its long range forecast for the monsoon season predicted South-West Monsoon (June to September) to be normal at 96% of the LPA (Long Period Average).

However, with the concerns of El-Nino there is possibility of either spatial or temporal distribution disruption.

Nevertheless, given that reservoir levels in May, 2023 were 23% higher than average, and that there has been excess rainfall in premonsoon months, the potential El-Nino impact is not expected to cause a major disruption.


Commodity prices in F23 were volatile. In the first quarter, steel prices rose sharply due to supply concerns caused by Russia-Ukraine conflict. However, from June 2022 onwards, prices softened on account of easing supply concerns and weak economic outlook due to interest rate increases by major Central Banks. Additionally, there was pressure on Indian steel prices due to levy of export duties on key raw materials and products. Subsequently from December 2022 onwards, prices firmed up due to expectations of demand growth driven by withdrawal of Zero-COVID policy by the Chinese Government and removal of export duties by the Indian Government.

Your Company stayed focussed on cost reduction through measures like VA/VE, negotiation with suppliers, long-term price contracting, etc.

Your Company continues to watch the market situation closely and continues to focus on mitigating commodity price volatility through "Commodity Risk Management".


In the Automotive Segment, your Company has increased capacity of SUVs from 28,000 in F22 exit to 39,000 by end of F23 to cater to continued robust demand for new launches and clear existing bookings and reduce waiting period for the new launches.

In the Farm Equipment Sector, 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 longterm strategy. We reached a number of milestones in F23. Mahindras Tractor factories in Zaheerabad and Rudrapur produced the 3,00,001st and 8,00,001st tractors respectively, while the Rudrapur facility also produced its 9,50,000th gearbox. As it prepares to open its new manufacturing facility in Mohali, Swaraj Tractors produced its two millionth tractor. A further 17.41% stake of Swaraj Engines Limited (SEL) was acquired by your Company from Kirloskar Industries Limited (KIL). As a result, we now own 52.13% of SEL, making SEL a subsidiary of the Company. During the year, we also launched our first exclusive farm machinery (non-tractor) plant in the industrial city of Pithampur, Madhya Pradesh, enabling the Company to manufacture durable, high-quality, affordable and accessible Made in India, for India farm machinery, marketed in both the Mahindra and Swaraj brands.


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.

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 F23, the Indian auto industry has shown double digit growth across all segments. Passenger vehicles have reached new highest ever mark with 3.89 million sales units while commercial vehicles are still below F19 levels by 4.5%.


The mid to long-term outlook for the Indian tractor industry is positive. Several initiatives taken by the Government are driving higher rural incomes. Examples being higher diversification towards high value crops, agriculture accelerator fund to promote technological advancement in agriculture, expansion of non-farm income opportunities, etc. In addition, increase in allocation of 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 5-6% annually and monsoon plays a critical role in defining the cyclical nature of the industry and therefore remains a key monitorable. Going into F24, 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 96% of the LPA (Long Period Average). However, with the growing concerns of El-Nino, there is possibility of disruptions either in spatial or temporal distribution.

Reservoir levels in May, 2023 were 23% higher than average. Adequate water in reservoirs coupled with excess rainfall in the premonsoon months of March to May supported irrigated lands. However, the above-normal heat wave days in May, 2023 over most parts of Bihar, Jharkhand, Odisha, Gangetic West Bengal, East Uttar Pradesh, coastal Andhra Pradesh and some parts of North Chhattisgarh, East Madhya Pradesh, Telangana and coastal Gujarat caused some disruption in land preparation activity before the Kharif sowing months.

Nevertheless, a normal monsoon outlook and water reservoir level better than 10-year average will be positives for the farming sector. Macroeconomic tailwinds mostly remain intact for the rural economy, and with likely higher Government support, particularly with 6 states going for elections, this bodes well for tractor demand.



Your Company is Indias #1 SUV player in Revenue Market Share. The Scorpio-N launch has been very successful, followed by electric C-SUV XUV400. The LCV <3.5T witnessed very strong momentum with PIK-UPs and the successful launch of Maxx PIK-UP. The EV 3Ws hit record sales and a dominant market leadership position with ~65% share.

In line with our EV vision, ~we announced to make investments of INR 10 thousand crore over a horizon of 7-8 years through our subsidiaries. These investments shall be for setting up the manufacturing facility, development, and production of our upcoming Electric Vehicles.

We reinforced our vision by setting-up Mahindra Electric Automobile Limited ("MEAL"), valued at USD 9 billion (INR 70 thousand crores) with an investment from British International Investment ("BII"). In parallel, Last Mile Mobility (LMM11) is following suit with a valuation of INR 6 thousand crores with International Finance Corporation ("IFC") investing in the LMM segment to further the purpose of electrification.

We showcased our audacious vision for the future of electric mobility with the unveiling of our new state-of-the-art EV platform INGLO and five new production-ready e-SUVs under two EV brands (Mahindra Twin Peak and BE).

Your Company is constantly leveraging multiple emerging technologies, including EVs, digital-enabled platforms and HMI with software-defined vehicles and is upskilling its product design engineers in evolving fields of data science, AI, IoT, mechatronics, and so on, to aid in the development of new products. Mahindra Research Valley, the flagship R&D and innovation centre has been granted 210 patents, the highest number of patents to any Indian Original Equipment Manufacturer ("OEM"), from across the globe in the last six quarters, which is testimony to the cutting-edge work being done by its diverse and talented workforce.

Environmental, Social and Governance (ESG) is a key priority for the Company. We have increased share of renewable power usage while achieving goals of manufacturing emissions and power intensity. We continue to be the only Indian Auto OEM in Dow Jones Sustainability Index (DJSI) Ranking.

The Company plans to capitalise on its strengths and the upcycle across SUVs and CVs over the next few years. Of the 13 new launches, we plan to launch 8 New EVs by 2027 that will comprise 20% of our volume.


During the year, your Company entered the next phase of growth amid heightened competition and disruption based on new technologies and trends, with farm mechanisation gaining more and more traction. During the year, Mahindra launched various new tractor models, as well as new implements and farm machinery in the country through collaboration with our COEs in Turkey, Finland and Japan (where M&M, over the years, has created footprints through strategic stakes and acquisitions).

In F23, the Company also set up a dedicated new farm machinery plant in Pithampur. The new farm machinery plant has state-of-the- art machinery, which work together seamlessly to produce high- quality farm equipment.


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, Krish-e has expanded its on-ground presence and now has a presence in 16 states, through 150 Krish-e centres, all of which deliver physical and digital farm advisory services and sell both farm equipment and equipment IoT solutions. Many of the centres also offer farm equipment on a rental basis and sell a range of crop inputs including agrochemicals, bio-fertilizers and seeds.

To trigger changes in farmer behaviour, Krish-e deploys on-ground advisory activities along with a digital advisory app on Krish-e Takneek plots (1 acre demonstration plots). Together they deliver significant and tangible increases in farmer income per acre, building trust and local relationships thus, facilitating the sale of farm equipment and inputs.

In F23, over 15,000 Takneek plots were operated where farmers saw an average income per acre increase ranging from Rs. 5,000-Rs. 15,000 per acre (basis crop type and region).

Krish-e saw a significant increase in the adoption of its Smart Harvesting Solution for Sugarcane Technology, as Sugar Mills from across the country utilised Krish-es state-of-the-art Artificial Intelligence and Satellite based Remote Sensing powered solution to accurately predict sugar recovery and yield for over 50,000 acres, and to harvest sugarcane based on Smart Insights.

In partnership with the AgTech start-up Carnot Technologies, your Company has made significant progress in scaling the presence of the unique IoT solution - Krish-e smart kit (KSK). Developed as a plug and play and brand agnostic IoT kit for the after-market, the KSK enables rental focussed equipment owners to track their assets in real time. In F23, 17,000 such kits were sold and installed, leading to an installed base of nearly 30,000 in India.



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 focusses 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 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.

Your Mahindra Leadership University (MLU) has consistently delivered impact through high velocity programs over the course of F23. In F22, we re-defined out operating model to become a centre of excellence for leadership development. In FY23, we have delivered on this mandate through multiple programmes across a range of critical areas. The inputs from the People Conversations, periodic connects with the CEOs and CHROs, and our focus on market scanning feeds into the Mahindra Leadership University through which we offered flagship Leadership Development Initiatives:

Qf Mahindra Accelerated Leadership Track: Our ongoing strategic alliance with Carnegie Mellon University to develop an accelerator programme Mahindra Accelerated Leadership Track (MALT) is now in its second year. 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. The first batch of 33 associates or MALTees graduated in January 2023, and we are now undertaking active talent management for them to shape their careers. The second batch of 42 associates started their yearlong journey in January, 2023.

or We kicked off the "Mahindra Future Shapers" programme with the intent to identify our next generation leadership pipeline and strengthen their capabilities. The programme is being delivered through our long-term strategic tie-up with Harvard

University and leading consulting firms. The Future Shapers will graduate in Q1 of F24 and once again through active talent management conversations we have already started deploying them across the Group. We are also excited to report that the next batch of Future Shapers will embark on their development journey from Q1 of F24.

<2f F23 also saw the launch of focussed initiatives to strengthen our support and enabling functions through development programs targeted at creating the next generation of functional leaders. We are pleased to report that the Future HR Leaders Program (with an intent to identify the next generation of HR CXOs) successfully concluded in F23 and the Emerging Finance Leaders Program (with an intent to identify the next generation of Finance CXOs) has kicked off in the last quarter of F23. The EFLP program will continue to run over the course of F24 and we will deliver this in partnership with a leading leadership consulting firm and Indian Institute of Management, Ahmedabad.

Highlights of the Academies

F23 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:

or F23 also saw our academies pivot towards a skills- first approach towards delivering learning interventions. We started the year by identifying the core skills and proficiency levels across the Finance, HR and Technology functions and followed this up by launching targeted in-person and digital learning journeys.

or F23 saw the graduation of the first batch of 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. In addition, we launched and delivered the HR Unnati programme focussed at strengthening the middle of our HR pyramid. Finally, we continue to drive specific skill building programmes across the entire range of HR topics to ensure that our HR professionals stay ahead of the curve.

or The Finance Academy of MLU successfully launched the Emerging Finance Leaders programme in partnership with the Indian Institute of Management, Ahmedabad and a leading consulting firm. The intent has been to develop the next generation of finance leaders from within the Group. The Finance Academy has also placed a strong focus on Controllership over the course of the year and conducted several programs across the Group companies.

or Our Technology Academy continues to focus on I developing deep skills across a range of emerging technology areas through a combination on inperson and online bootcamps.

Highlights of our Digital Learning Initiatives

From F22 onwards, our focus has been to bring world class digital learning content to our employees across all management grades. To that effect, we entered into strategic partnerships with key content partners such as Udemy, HMM Spark etc. Furthermore, in order to make the learning experience truly world class, we have also launched the EdCast by Cornerstone, learning experience platform for employees across a number of our Group companies.

Our learning experience platform now consolidates our various digital learning content providers under a single umbrella for the learner and by leveraging the power of artificial intelligence and machine learning, it is able to provide highly personalised learning content to our employees across the Group. Furthermore, we have been able to leverage the platform well beyond standardised e- learnings and this has led to both a high adoption rate as well as learner NPS. In a short period of time, we have seen approximately 90% adoption rate and more than 1 million items of learning consumed. We believe this is a testament to our skills first approach of capability development and we anticipate further demand for learning content over FY24.


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 our use of the campus, in F22, we also prepared the Nashik campus to welcome back our learners to our piece of heaven.

Apart from the ongoing maintenance activities, we have now reimagined 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!

F23, saw a strong Back to Classroom trend and MLU Nashik has once again regained its prominence as the crown jewel of our learning infrastructure. We hosted more than 8,700 learners over the course of the year with an average score of 4.69 in terms of an incampus experience.


In 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 technical skills and leadership behaviours. These were deployed in performance management discussions and capability building initiatives. Specific development goals are now integrated into training needs and 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 organisations 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.


Our performance management system is built on strong principles of simplicity, accountability, empowerment, and meritocracy. It aligns the individual efforts and energy with organisational priorities. It creates a strong merit-based culture that rewards and encourages outperformance. Leaders and managers are held accountable for fostering an environment which encourages employees to demonstrate the right behaviours and deliver outstanding results.

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 is key at every stage. A key highlight of our performance system is that we no longer use overall appraisal ratings. All key decisions (e.g., Promotions, Increments, Rewards, etc.) are based on the individuals Goal Sheet / Performance Score and Scores on Leadership Behaviours and discussions amongst the talent panels appropriately constituted at different levels. Learning & Growth Plan is a key tool in our performance management system which aims at developing skills for current and future roles, and for career growth for employees.

The overall objective of the performance management system is to ensure an alignment between an individuals goals and the organisations 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.


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, 21 GMCs joined the Group in 2022, and 31 GMCs will join us in 2023 across various Sectors and functions. As part of the Experiential Module, each GMC that joins us undergoes three stints of 4 months across different functions and businesses. The Summer Internship Programme has evolved over the years as a critical source of the GMC talent pool, and this year we have 29 students who have joined us from the top B-school of India under the GMC Summer Internship Programme 2023.


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 have been working with wider involvement across the organisation, 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 was rolled out with clearly articulated vision and beliefs.

During the year, we have driven leadership perspective sharing sessions, conscious inclusion workshops, infrastructure correction across our locations and established ERGs across prominent locations. We have announced, e-accessibility on our social media platforms the International Day of People with Disabilities, where all our posts on social media carry image descriptions and closed captions. We expect these steps 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 are also going to be thrust areas 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 termination of 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 specialised hiring consultants while maintaining our core philosophy of meritocracy.

Talent Management

Prioritising 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.


Awareness in this area has been created by a POSH campaign reiterating Mahindras commitment to providing a safe workplace for all its employees. During the year, the Company organised sensitisation and awareness programmes through inductions training for new joinees, online e-modules for all employees, including sending emailers, creating standees and posters to sensitise all employees to conduct themselves in a professional manner. Further, additional virtual and classroom trainings were conducted by our Ethics Counsellors. The Company also organised offline leadership conversations on gender sensitisation and inclusions and employee interactive sessions including conscious inclusions.


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:

Further, in our endeavour to improve quality, reduce cost, ensure safety and improve productivity, our Companys shop floor associates generated an average of 12 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.


The industrial relations scenario continued to be largely positive across all the manufacturing locations. Long Term Wage and Bonus settlements were closed amicably for all the plants. The sustained efforts towards building a transformational work culture resulted in zero production loss in the F23 and helped create a


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, 2,967 associates have participated from across all its manufacturing units.


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.

Various awareness sessions on driving employees towards a healthy and better lifestyle, Post COVID care, emotional well-being, 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 23,495 permanent employees on its rolls as on 31st March, 2023.


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, ^Vhistle-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.



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.



As at 31st March, 2023, the Property, Plant and Equipment and Intangible Assets stood at Rs. 19,772 crores as compared to Rs. 20,167 crores as at 31st March, 2022. During the year, the Company incurred capital expenditure of Rs. 4,323 crores (previous year Rs. 3,349 crores). The major items of capital expenditure were on new product development and capacity enhancement. During the year, the Company has taken impairment of certain assets of trucks and buses business and certain asset transfers to a subsidiary company.


(Rs. in crores)

Borrowings F23 F22 Inc./(Dec.)
Long-term borrowings 2,332 5,682 (3,350)
Short-term borrowings 2,312 816 1,496
Unclaimed matured deposits 0.1 0.7 (0.6)
Total 4,644 6,499 (1,855)

Borrowings have decreased from Rs. 6,499 crores in the previous year to Rs. 4,644 crores in the current year mainly due to repayments in the current year.


F23 F22
Raw materials and bought out components as a % of cost of materials consumed 7.0% 6.2%
Finished goods and stock-in-trade as a % of sales of products 4.4% 5.1%

Raw materials and bought out components as a percentage of cost of materials consumed has increased mainly on account of build up for BS6.2 transition from 1st April, 2023 and also stocking of some of the critical components due to supply constraints. However, finished goods and stock-in-trade as a percentage of sales of products have decreased mainly on account of focus on inventory management and higher sales traction of new products.


Trade Receivables are Rs. 4,042 crores as at 31st March, 2023, as compared to Rs. 3,039 crores as at 31st March, 2022. As a percentage of revenue from sales of products and services, trade receivables are lower at 4.9% as at 31st March, 2023, as compared to 5.4% for the previous year mainly on account of higher volume.


(Rs. in crores)




Amount % to Revenue from Operations Amount % to Revenue from Operations Increase %
Sales of products 82,032 96.6 55,537 96.1 47.7
Sale of services 1,219 1.4 1,138 2.0 7.1
Other operating revenue 1,709 2.0 1,112 1.9 53.7
Revenue from operations 84,960 100.0 57,787 100.0 47.0
Other income 2,545 3.0 2,054 3.6 23.9


Sales volume in Auto segment witnessed an increase of 50% clocking 6,98,456 vehicles in the current year from 4,65,605 vehicles in the previous year. Increase in volumes combined with higher realisation led to Revenue from operations growing by 53.7% as compared to the previous year.

Other income during the year ended 31st March, 2023 at Rs. 2,545 crores is higher than Rs. 2,054 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 Increase %
Material costs 64,558 76.0 42,560 73.7 51.7
Employee benefits expense 3,650 4.3 3,330 5.8 9.6
Finance costs 273 0.3 226 0.4 20.8
Depreciation, amortisation and impairment expense 3,154 3.7 2,498 4.3 26.3
Other expenses 6,310 7.4 4,869 8.4 29.6
Total expenses 77,945 91.7 53,483 92.6 45.7


The total expenditure during the year as a percentage of revenue is 91.7% as compared to 92.6% in the previous year. The reduction is a reflection of the cost management initiative undertaken by the Company.


The material cost as a percentage of revenue has increased from 73.7% in the previous year to 76% in the current year mainly on account of elevated levels of inputs costs and supply side challenges witnessed during F23.


The personnel cost as a percentage of revenue from operations has decreased from 5.8% in the previous year to 4.3% in the current year mainly due to the higher revenue base in the current year.


Other expenses as a percentage of revenue from operations have decreased from 8.4% in the previous year to 7.4% 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 as a percentage of revenue from Operations have decreased from 4.3% in the previous year to 3.7% in the current year mainly due to higher revenue base in the current year.


The interest expense as a percentage of revenue has decreased from 0.4% in the previous year to 0.3% in the current year mainly on account of repayment of borrowings in the current year.


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 and certain long-term assets.


The provision for current tax and deferred tax for the year ended 31st March, 2023, as a percentage to profit before tax (before exceptional items) is lower than the previous year mainly on account of higher dividend income in FY 2022-23 as compared to FY 2021-22 and deferred tax created on capital losses.

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

Particulars M&M 1
F23 F22
Debtors Turnover (times) 23.5 21.6
Inventory Turnover (times) 8.6 7.9
Interest Coverage Ratio (times) 21.6 12.9
Current Ratio (times) 1.33 1.38
Debt Equity Ratio (times) 0.16 0.17
Operating Profit Margin (%) 12.3 12.2
Net Profit Margin (%) 7.7 8.5
Return on Net Worth (%) 15.9 13.3

The Return on Average Net Worth has improved from 13.3% in the previous year to 15.9% in the current year on the base of higher profit for the current year.

Explanation for variation of 25% or more in Key Financial Ratio:

Interest Coverage Ratio: The interest coverage ratio is healthier at 21.6 in FY 2022-23 as against 12.9 in the previous year primarily due to decrease in finance cost resulting from repayment of borrowings during the year.


As on 31st March, 2023, for the purpose of consolidation as per Indian Accounting Standards (Ind AS), the Group comprised of the flagship holding company Mahindra & Mahindra Limited:

The Consolidated Revenue from operations is Rs. 1,21,269 crores in the current year as compared to Rs. 90,171 crores in the previous year, registering an increase of 34.5%.

The consolidated profit before exceptional items, share of profit of associates and joint ventures and tax for the year is Rs. 11,305 crores as against Rs. 7,092 crores in the previous year, registering an increase of 59.4%. The consolidated profit after tax after noncontrolling interests and exceptional items for the year is Rs. 10,282 crores as against Rs. 6,577 crores in the previous year, registering an increase of 56.3%.

Tech Mahindra Limited, Flagship Company in the IT Sector, reported a consolidated operating revenue of Rs. 53,290 crores in the current year as compared to Rs. 44,646 crores in the previous year, registering an increase of 19.4%. Its consolidated profit after tax after non-controlling interests is Rs. 4,831 crores as compared to Rs. 5,566 crores in the previous year, registering a decrease of 13.2%.

The Groups finance company, Mahindra & Mahindra Financial Services Limited, a listed subsidiary of the Company (Mahindra Finance), reported a consolidated operating revenue of Rs. 12,700 crores during the current year as compared to Rs. 11,318 crores in the previous year, registering an increase of 12.2%. The consolidated profit after tax after non-controlling interests for the year is Rs. 2,072 crores as compared to Rs. 1,137 crores in the previous year, registering an increase of 82.2%. Mahindra Finance customer base has crossed 9.0 million customers and currently has a network of 1,386 offices.

Mahindra Lifespace Developers Limited, the listed subsidiary in the business of real estate and infrastructure, reported a consolidated operating revenue of Rs. 607 crores as compared to Rs. 394 crores in the previous year, registering an increase of 54.1%. The consolidated profit after tax after non-controlling interests for the year is Rs. 101 crores as compared to Rs. 154 crores in the previous year, registering a decrease of 34.4%.

Mahindra Holidays & Resorts India Limited, the listed subsidiary in the business of timeshare, registered a consolidated operating revenue of Rs. 2,517 crores as compared to Rs. 2,013 crores in the previous year, registering an increase of 25%. The consolidated profit after tax after non-controlling interests for the year is Rs. 115 crores as compared to Rs. 68 crores in the previous year, registering an increase of 69.1%.

Mahindra Logistics Limited, a listed subsidiary in the logistics business, reported a consolidated operating revenue of Rs. 5,128 crores as compared to Rs. 4,141 crores in the previous year registering an increase of 23.8%. The consolidated profit after tax after non-controlling interests for the year is Rs. 26 crores as compared to Rs. 18 crores in the previous year, registering an increase of 44.4%.

Swaraj Engines Limited*, a listed subsidiary in the business of manufacture of Diesel Engines and its components, reported operating revenue of Rs. 1,422 crores as compared to Rs. 1,138 crores in the previous year registering an increase of 25%. The profit after tax for the year is Rs. 134 crores as compared to Rs. 109 crores in the previous year, registering an increase of 22.9%.

* During the year ended 31s March, 2023, the controlling status was changed from associate to subsidiary.


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

& (Rs. in crores)

Segments F-2023 F-2022
1. Automotive 3,651 1,254
2. Farm Equipment 4,212 3,891
3. Financial Services 2,789 1,404
4. Hospitality 201 99
5. Real Estate (101) (81)
6. Others 717 665
7. Eliminations 18 20
Total 11,487 7,252


Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking 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.