Mahindra & Mahindra 144A

to everyone who has joined in to us in person as well as virtually, and a very warm welcome to the quarter one analyst meet of Mahindra and Mahindra Limited. We have with us today our Group CEO and MD, Dr. Anish Shah, ED and CEO of our auto and farm business, Mr. Rajesh Jejurikar, and our Group CFO, Mr. Amar Jyoti Barua. We will be taking your questions at the end of this presentation. As a reminder, this meeting is being recorded. For the purpose of completeness, I want to read out this statement. Certain statements... Certain statements in this meeting with regard to our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. With that, I now invite Dr. Shah for his opening remarks.

Thank you, Divya. And good evening, everyone. Good afternoon as well to folks who joined online. And we have a quarter again with a strong operating performance, which is a common theme. We hope to keep it that way. So let's start with the key messages for this quarter. Auto and Farm continue to be on track with their operating performance. Market share gains being a key theme this quarter. SUV up 130 basis points. LCV up 160 basis points. Tractors up 180 basis points. Margin expansions is the second big theme for the quarter, reasonably substantial, resulting in auto profit after tax up 35%, farm up 4% in a tough market. Mahindra Finance is finally unlocking its potential. We're starting to see that in the numbers now. This is something we've talked about for a while. We've talked about the turnaround that we started probably one year, one and a half to one year, nine months ago. We talked about the three year turnaround. We started to see the impact on asset quality. We were down at 3.4% at the start of this year. A marginal increase of 3.6, which is the first quarter increase that typically happens. Beyond that, assets up 23% and profit up 37%, also helped by lower credit costs. And this is something that is on the back of a good quarter loss here for Mahindra Finance as well, and therefore is putting this business very solidly on track now. TechM, the turnaround has commenced. Q1 is on the right track. And this is one where we will look for a lot more over the next three years and be able to hopefully deliver on the tech front as well. As a result, consolidated profit is up 20%. This does exclude two one-time gains that were in our numbers last year in the first quarter, specifically KG Mobility, which was over 400 crores, as well as the sale of MCIE. So those are two that we have excluded in comparing numbers just from an operating standpoint. And ROE is at 19.4%. So that is the overall message as we look a little deeper into the numbers. Revenue up 10% and profit is at 3,283 crores, up 20% excluding the one-time gains that we had last year. The key drivers of PAT, auto and farm together grew 18%. And beyond the market share gains that we spoke about, capacity is up 3x in the last four years. And that is enabling us to be a little more aggressive in the market now and also gain operating leverage, which is helping in terms of margins. And that's something that we will continue to see benefits from. The TechM and Mahindra Finance front margins is a key focus for TechM and while you see a 23% gain from the last year first quarter, TechM's last year first quarter was weaker and therefore we are looking more at the longer term gains that we need to get from TechM. Mahindra Finance was a solid quarter overall. Growth gems up 34%. Here, as I mentioned before, the profit number is not the primary focus for us because it is the actions that are going in to build each of these businesses up 5x. So while we are happy with the 34% profit gain, it's easier for me to say this is not a big focus when this is a good number rather than when this is not a very good number. So it's one that I will consistently maintain. It's more the growth that we're really looking for in these businesses right now. Focusing on auto and farm to start with, auto we continue to be the number one player in SUVs. Volume is up 24%. We had talked about mid to high teen growth at the start of this year as a commitment for F25 or as an expectation rather for F25. We are at 24% to start the first quarter. Capacity we spoke about, margins are up 180 basis points. So that's been a pretty significant jump in auto margins. And as a result, PAT is at 1,330 crore. Ahead of tractors, tractors comes in fairly close at 1,238 crores. And the domestic industry outlook is improving. Rajesh will talk about that. Some moderation in international markets, but strong execution, not just on market share, but also on margin, up 100 basis points here. And farm machinery revenue is up 34%. Still a little lower growth than I'd like it to be, while it's a good number. This is one area where we still feel we can get more growth, just given the potential we have in this business. Mahindra Finance, we talked about asset quality and asset growth. Beyond that, technology is starting to deliver results. On a number of fronts, we've got 100% of the branches now under central processing, which helps tighter controls as well. Also, a number of efforts on improving customer experience through technology. And there's, again, more to be done there, but good wins so far in terms of where we are. And therefore, profit after tax, Mahindra Finance in this quarter is just very slightly shy of 500 crores. It's a good mark to reach for us, and we close the quarter at 497. TechM, the new organization is focused on service delivery. Demand outlook is still mixed, but the quarter shows some recovery from last year, and we will continue on this path of recovery as we go forward. Logistics execution is better than it has been before and we feel a lot better about where we are. The express business did have a loss but the management team has promised to turn around and a break even by end of the current quarter that we are in and that's something that is on track at this point in time and as that comes in the Growth in 3PL last mile will help and logistics will start getting back on track as a business overall. So that's the weaker spot for us right now. Hospitality continues to be a strong spot, 90% occupancy. Membership's growing, 300,000 members now. Average unit realization is up 31%. So good story there. Real estate continues to grow at a very rapid pace. aided by an aggressive approach by the team. A lot of changes made there in terms of how the team is approaching the marketplace as well as the overall market buoyancy. So a combination of that resulting in a 3x increase in pre-sales and GDP acquired is 68% higher than last year. So as a result, consistent delivery on commitments is something we continually talk about. We are at 19.4%. And yes, the bar is still at 18, not going up to 19. We'll continue to sort of fluctuate around that. given the results overall, slightly lower than first year because first quarter last year included the one-timers as I spoke about. But again, we feel pretty good that we will be on track to deliver 15% to 20% growth on a longer-term basis on EPS. So with that, I would invite Rajesh to come up and talk about more details on the auto and farm business. Rajesh?

Thanks, Anish, and good to see all of you and welcome to those who are on the virtual format as well. I'll start with FES. I'll run quickly through the slides so we have enough time for Q&A. I guess most of you have picked up what's on the slides already. So our tractor volumes were up mainly because we gained market share. The market had a slight degrowth, but it was a good gain in market share to get to 44.7. Of course, our quarter one market shares are always higher than the rest of the year. But on that base, we've had a good growth. This kind of reflects the fact that our quarter one market shares are usually higher as well. The question on what's the future, we clearly see some green shoots. One is improving terms of trade for farmers. We've been seeing that. But in quarter one, seen a more dramatic improvement with output prices going up, MSPs improving, input inflation not being so high. So that's a favorable factor. Monsoons have been good in July in most parts of the country, especially west and south, which was really bad last year. We would see a good effect of that in the second half. Much higher spending by the government in the rural area and that's known to be a good driver of growth for tractor. And of course some part of Navratra will come in the second half of this year compared to last year. The farm machinery business has had a good growth as well in the quarter and we did about 265 crores. Anish covered this, so 5% growth in PBIT on the consolidated and flattish revenue. The margins you can see, you know, we've got to 19.7% as the core tractor margin, something we've been, you know, wanting to get to over the last few quarters. You know, so we can talk a little bit more if you like in the Q&A on what enabled this, but this was something that we were very, very focused on wanting to get to this year at, you know, close to the 19-20% core tractor margin. And you can see that, you know, we've managed this curve of being able to deliver margins in a pretty kind of narrow band over long periods of time, irrespective of what's happening to industry. On the automotive business, we grew SUVs 24%, pickups, the industry was flat again, and we gained shares. So we gained some volume there, but the industry was flat. And you can see we gained 1.6 share points on LCVs. This is the second, we were number two for eight quarters on volume. Given our average price point, we think that's a very good performance and a continued strong performance by way of revenue market share. This is a recap slide which we've used in the previous meetings. The reason we're putting it up here is we've now taken our capacity up several times from where we were two and a half, three years back. The reason we've been doing that is, of course, that we fully leverage the opportunity in front. But also, more importantly, we bring down the waiting period for customers. And when we aspire to bring down waiting period to customers, clearly the concept of booking is an antithesis to that. In a way, we're going to retire this slide after today. And hopefully, we continue to grow without having to show what are our booking numbers, because bookings of this kind really mean that we're not able to give customers enough vehicles at a reasonable delivery time. But this is what first July was. And since the month is not over, we don't have a first August to share. But we did have a very healthy increase in bookings in XUV700 during the month, up from the previous month by more than 40-45%. So that is still yesterday. Question many of you want answered, so we'll try and answer that here and maybe more in the Q&A because I think you probably want a little bit more. So we took the 700, exquisite 700 price up from launch, which is over three years, by 3.8 lakhs to 4 lakhs. This was a function of commodity prices, uh premiums that we were paying for importing chips which we had to we have a large number of chips so we were paying premium so that was all getting built into the cost uh so we have taken very aggressive price increases capacity has gone up in the meanwhile so 300 we started at three and a half thousand we went to six now we are at ten as we shared in the february meeting you know one of the key challenges that we had on xuv700 as we were thinking about growth is to create accessible price point. And in February, we had kind of called out that we will take a series of actions to make the brand more accessible so that we can grow. A very large percentage of the brand volume was coming at the high end, which was good till we were at a certain volume. But once you want to go beyond that volume and you want to grow being a larger brand than 6,000 a month, then average price point of 25 lakhs X showroom or 23 lakhs X showroom with on-road crossing 30 starts becoming a barrier for segments. So the first initiative we took was to introduce a new version called AX5 Select, which came with panoramic sunroof and so on. at a more reasonable price point way below 20 and we did feel that we at least in the short run need to run a promotion which we branded as a third anniversary offer to kind of make the two higher versions as as more accessible as well we think this is not going to have a financial impact or significant financial impact because it will we will get operating leverage through higher volumes And many of our costs have come down, including chips, but also work that we've done on value engineering. So that's where we are on why we did this. I spoke about the LCVs, the LCV market share we gained again in quarter one. Last mile mobility, the penetration of electric three-wheelers continues to grow. It was close to 20% in quarter one, which is a very good sign. And we have been saying that we believe that this category will probably be the fastest to penetrate because it gives clearly visible benefits to the customer. We had a PBIT growth of 45% on auto and a revenue growth of 16%. The standalone margin came at 9.5%. With that, I'll hand over to Amar. Thanks.