M & M could very well stand for Mergers and Marketing Strategies as the company is going places with it's new techniques and mergers aimed at increasing profits and Gross revenue.
Overview:
Mahindra's Q3 F2015 PAT escalated by 5.7 per cent to Rs. 967 Crore. Announcements regarding the unaudited financial results of the quarter year ending with 31st December, 2014 have been given at a meeting of The Board of Directors at Mahindra & Mahindra on the 13th February,2015. The results for both the company and the consolidated Mahindra Group were published. In light of these events, a subsidiary of the company called Mahindra Vehicle Manufacturers Limited was set up. It's goal was to broaden the horizons of market offerings of the company by sourcing concurrent products.
It has been considered one of the outstanding cogs of the operating wheels of the company and plays a critical role in its business to an extent where only the combined results of both M&M and MVML are considered to shine light upon the extensive performance of the company.
M&M enjoys MVML's company in sharing profits!
The snail-like characteristic of the Indian automotive Industry can be clearly microscoped with the performance of the Utility Vehicle Industry dropping down by 6.1% in Q3 F2015. Furthermore, the tractor industry has received a blowing downfall of 21.8% in Q3 FY2015 owing to a shelved and scanty monsoon. Owing to the present conditions of markets, product upgradation and aggressive field activities seem to be the main hub of the company. Apart from these changes, the company also aims to deliver escalating value, arising out of efficient processes.
Enduring leadership position in both the utility vehicle and tractor segment has been one the prides of the Combined Entity. Clear proof of this respected position can be exclusively highlighted by the sale of 49,724 utility vehicles (with its market share being 37.4%) and 56,471 tractors in the domestic market during this current quarter.
Export of tractors enjoyed a whopping 50.4% increase with the sale of 3,385 units this quarter as compared to the 2,251 tractor units sold in Q3 in the previous year.
As of the quarter which ended on 31st December 2014, the gross revenues and other income generated by the Combined Entity have amounted to Rs.10,087 crore, analogous to the Rs.11,286 crore in Q3 of the previous year, marked by a slight decrease. The generated profit without tax deductions yields Rs.1,139 crore in the current quarter with a parallel Rs.1188 crore in Q3 of the previous year. However, the Net Profit after the tax deductions aggrandized by 5.7% from Rs.914 crore in Q3 of the previous year to Rs.967 crore for the current quarter.
The positive results of the company in the profit sections also owe a great deal to the the merger of Mahindra Engineering Services Limited (MESL), a subsidiary of the company with Tech Mahindra Limited ( TML). Owing to the merger, shares were received by the company in light of its holdings in MESL. The company has also stored the recordings of the shares it has received of TML, and this amounts to a whooping value of Rs. 359 crores. Accounting for Investments has been deemed mandatory by the requirements of Accounting Standard 13. The cost of the Company's holdings in MESL has been documented as Rs.299 crores and the excess monetary value has been accounted for as an exceptional item. The significance of the TML market shares over the year can be owed to it's increase to Rs. 985 crores till 12th February, 2015.
The combined entity has, no doubt added to the intrinsic value of the company and has helped in boosting it's performance as well as annual profits and incomes. The M&M standalone has also given complementary results with the decrease of the Gross Revenues and Other Incomes from Rs. 11,295 crore corresponding to the previous year, to Rs. 10188 for the quarted ended on 31st December, 2014.
After accounting for the exceptional items and tax decutions, the net profit for the M&M standalone company has scaled new heights to Rs.942 crore this current quarter from Rs.934 crore the quarter of the previous year.
In Conclusion, the previous year saw Rs. 11,422 crore from Gross Revenues and Other Income and Net Profit after accounting for tax deductions amounted to Rs.848 crores.
The YTD period also sees some good times:
On the other hand, The Gross Revenues and Other Income of the Combined Entity for the YTD period ended 31st December 2014 stands at Rs. 31310 crore as against Rs. 32159 crore in the corresponding period previous year. The Net Profit after tax deductions is Rs. 2837 crore for the current YTD period as against Rs. 2732 crore in the corresponding period previous year.
The Gross Revenues and Other Income of the Company for the YTD period ended 31st December 2014 is Rs. 31,660 crore as against Rs. 32,074 crore in the corresponding period previous year. The Net Profit after tax is Rs. 2,771 crore for the current YTD period as against Rs. 2861 crore in the corresponding period previous year.On a comparable basis the Gross Revenues and Other Income and Net Profit after tax for the YTD period of the previous year were Rs. 32,594 crore and Rs. 2,656 crore respectively.
Consolidation is key:
The consolidated Gross Revenues and Other Income of the Group for the Quarter ended 31st December 2014 is Rs. 18372 crore (USD 3.0 billion) as against Rs. 20680 crore (USD 3.4 billion) in the corresponding quarter of the previous year. The consolidated Net Profit after tax deductions and minor interest values for the current quarter is Rs. 930 crore (USD 152.5 million) as compared to Rs. 1,230 crore (USD 201.6 million) in the corresponding quarter of the previous year.
The Consolidation results of the YTD period was also documented and announced. The Gross Revenues and Other Income of the Group for the YTD period ended 31st December 2014 is Rs. 56,760 crore (USD 9.3 billion) as against Rs. 58,699 crore (USD 9.6 billion) in the corresponding period of the previous year. The consolidated Net Profit after tax and after minority interest for the current YTD period is Rs. 2686 crore (USD 440.2 million) as compared to Rs. 3,034 crore (USD 497.2 million) in the corresponding period of the previous year.
There may not be significant or analogous schemes seen in the company corresponding to the previous year. This is owed to the merger schemes put in action in the current quarter, owing to a plethora of changes in the company's outputs as seen in the results of the Q3 and YTD F2015.
Shaking hands off with CIE Spain:
The Profitable alliance with CIE concluded during the quarter. The ending of the alliance was a result of the the merger of the Company’s subsidiaries Mahindra Ugine Steel Company Limited (MUSCO), Mahindra Gears International Limited (MGIL) and Mahindra Investments (India) Private Limited (MIIPL) with Mahindra CIE Automotive Limited (MCIE) an associate of the Company.
As a result of this merger, the Company received equity shares of Mahindra CIE in lieu of its holding in those Companies. The investment in MCIE is being carried in the books of the Company at Rs. 526 crore. The market value of these shares so received is Rs. 1465 crore as on 12th February, 2015. The Company also holds 13.5% stake in CIE, through its subsidiary Mahindra Overseas Investment Company (Mauritius) Limited which was acquired at a cost of Rs. 806 crore. The market value of this investment is Rs. 1355 crore as on 11th February, 2015.
The Group as on 31st December 2014 comprised of 110 Subsidiaries, 7 Joint Ventures and 16 Associates. A full summation of Gross Revenues and other income of all the group companies (including the Company) taken together for the YTD period ended 31st December 2014 is Rs. 77,300 crore (USD 12.7 billion). The combined market capitalization of the listed entities within the Group (including the Company) is Rs. ,crore (USD 28.6 billion) as on 12th February, 2015.
Source: Autobei
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