Revenue from operations in Q1FY22 were 19,172 crores. Revenue saw a growth of 17.5% YoY but also witnessed a decline of (-10.6%) QoQ.
EBITDA for Q1FY22 stood at Rs. 1,184 crores, posting a decline of (-38.4%) QoQ and (-71.8%) YoY.
EBITDA margin stood at 60% in Q1FY22, the same for Q1FY21 was 12%. Q4FY21 EBITDA margin was 20%.
Profit Before Tax stood at Rs. -967 crores. PBT was Rs. -83 crores during Q1FY21 and was positive at Rs. 1,625 crores in Q4FY21.
Profit after tax turned positive to Rs. 424 crores as the company faced a loss of Rs. 98 crores during Q1FY21. The PAT decline by (-60.4%) when compared on QoQ basis.
Q1FY22 Standalone Highlights
Standalone revenue in Q1FY22 was 11,763 crores. Revenue saw a growth of 110% YoY but also witnessed a decline of (-12.9%) QoQ.
EBITDA for Q1FY22 stood at Rs. 1,837 crores, posting a decline of (-4.3) QoQ and a growth of 171.3 % YoY.
EBITDA margin stood at 16% in Q1FY22, the same for Q1FY21 was 16% and for Q4FY21 EBITDA margin was 14%. The standalone business has shown a stable EBITDA margin trend during past few quarters.
Profit Before Tax stood at Rs. 1,128 crores. PBT saw a huge growth as it was only Rs. 126 crores in Q1FY21. On YoY basis, the PBT witnessed a growth of 196.8%.
Profit after tax stood at Rs. 856 crores, showing huge growth on YoY and QoQ basis.
Business Highlights
The company has taken price increase in tractors during July at close to Rs. 19,000.
The company has faced high inflation since last months. From Mar-20 to Jun-21, Copper Prices have rose 86% and HR Steel prices have increased by 77%. Platinum and Rhodium prices have increased by 47% and 86% respectively.
The company is also facing semi-conductor shortage issues. Freight costs have increased too.
Management expects that the inflation in commodities will soften from Q3FY22.
FES Highlights
The FES revenues grew by 7% on QoQ basis and 59% YoY to Rs. 5,319 crores.
Volume growth for the same was 6% QoQ and 52% YoY.
The EBIT margin for the segment decline by 170 bps QoQ to 20.3% showing pressures due to commodity price increase.
The segment posted highest ever profit before tax at Rs. 1,188 crores.
Demand drivers for the tractor are present but management seem conservative in giving out growth guidance due to higher base.
The tractor market share reached 41.8% which was highest in last 2 years.
Inventory currently is at 30 days.
All the FES subsidiaries have posted profit during Q1FY22.
Due to delayed monsoon in UP and eastern markets, the southern market is doing better currently.
The company sees good growth in farm machine in next 3 years.
Automotive Highlights
Automotive revenue decreased by (-23%) QoQ due to as lockdown affected volumes which were down by (-20%) QoQ.
EBIT margin of automotive business decreased by 330 bps QoQ to 1.7%. The reasons for the same were commodity price pressures and negative operating leverage.
The auto business has strong bookings.
The market has improved in UV segments which is a strong focus point of the business.
Volumes and performance was impacted due to lockdowns in many key regions.
The time in lockdown was used to build inventory at 80% of the optimum level.
Order books: Thar-39k+ with 10 months waiting period. XUV 300-10k+ bookings with 2 months pipeline. Bolero has 4k+ bookings with 1 month pipeline.
Bookings for XUV 700 would start from Q2FY22 onwards and deliveries will begin from Q3FY22 onwards.
The production of XUV 700 has not been impacted due to semiconductor shortages.
The key issues continued to be commodity price increase and semiconductor shortages. The management expects the semiconductor shortage to continue for 3 quarters.
The company has lined up 23 new products till 2026 which include nine SUVs.
The company has sold 30k E3W in which the company commands a strong 50% market share.
The passenger segment is yet to pick up for EV 3W.
Mahindra & Mahindra Financial Services
The financial services segment is hit hard in this quarter.
The NPA provisioning stood at Rs. 2,517 crores.
The company suggests that the GNPA is expected to improving in the following periods.
GNPA has increased from 9% to 15%.
Capital adequacy ratio stood at 24%.
Tech Mahindra
The business has witnessed lots of traction in cloud, data sciences, high tech manufacturing and healthcare
The total contracts have increased to $850 million.
The margins of the company have been improving too.