Mahindra & Mahindra Ltd has exhibited a consistent growth in revenue over the past decade. The total sales increased from INR 71,448 crores in FY15 to INR 139,078 crores in FY24.
The company's revenue is primarily driven by its automotive and farm equipment sectors. While specific segment data is not provided, these segments have historically contributed significantly to total revenue.
Gross profit margins have fluctuated due to changes in raw material costs and other manufacturing expenses. The company managed to maintain profitability despite market challenges.
EBITDA margins have shown resilience, with operating profits increasing from INR 4,277.69 crores in Mar-22 quarter to INR 7,243.12 crores in Jun-24 quarter.
Net profit margins have improved, with net profit increasing from INR 1,812.49 crores in FY21 to INR 11,268.64 crores in FY24.
Raw material costs constitute a significant portion of total expenses, rising from INR 42,575.56 crores in FY15 to INR 85,070.07 crores in FY24.
Employee costs have steadily increased, reflecting talent acquisition and retention efforts, from INR 7,202.49 crores in FY15 to INR 10,624.33 crores in FY24.
Other expenses, including selling and administrative costs, have been managed efficiently, with a focus on expense optimization.
The company has implemented cost-saving initiatives, particularly during the pandemic, to maintain operational efficiency.
Measures include supply chain optimization, digital transformation, and lean manufacturing practices.
Receivables increased from INR 5,476.16 crores in FY15 to INR 7,459.4 crores in FY24, indicating effective credit management.
Inventory levels have been maintained efficiently, with inventories at INR 18,590.47 crores in FY24, aligning with sales growth.
Payables data is not specified, but the company appears to manage its obligations effectively, maintaining good supplier relationships.
Operating cash flows have been volatile, with negative flows in some years. FY24 saw a negative operating cash flow of INR 5,629.95 crores.
Investing activities reflect ongoing capital expenditures, with outflows of INR 5,614.77 crores in FY24.
Financing activities provided positive cash flows, indicating reliance on external funding, with INR 12,281.41 crores in FY24.
Total assets increased from INR 94,376.21 crores in FY15 to INR 234,721.74 crores in FY24, showing robust growth.
Borrowings have increased from INR 37,911.46 crores in FY15 to INR 108,647.25 crores in FY24.
The debt-to-equity ratio stands at approximately 1.5x in FY24, indicating moderate leverage.
ROE has improved due to higher net profits, reflecting efficient use of shareholder funds.
ROA shows a positive trend, indicating effective asset utilization.
ROCE has increased, demonstrating improved profitability from capital employed.
While specific segment data is not provided, the automotive segment remains the primary revenue generator, followed by the farm equipment segment.
The automotive segment has seen margin improvements due to operational efficiencies and product mix optimization.
| Ratio | Value | Inference |
|---|---|---|
| Current Ratio | 1.25x | Indicates adequate short-term liquidity. |
| Quick Ratio | 0.85x | Reflects sufficient ability to meet immediate liabilities. |
| Debt-to-Equity Ratio | 1.5x | Moderate leverage, manageable debt levels. |
| Interest Coverage Ratio | 2.13x | Comfortable ability to cover interest expenses. |
| Inventory Turnover Ratio | 7.5x | Efficient inventory management. |
| Receivables Turnover Ratio | 16x | Effective collection of receivables. |
| Return on Equity (ROE) | 17% | Strong profitability for shareholders. |
| Return on Assets (ROA) | 5% | Efficient use of assets to generate profits. |
| Return on Capital Employed (ROCE) | 12% | Improved profitability from capital employed. |
| Price-to-Earnings (P/E) Ratio | 27x | Market valuation reflects growth expectations. |
| EV/EBITDA | 15x | Indicates market's valuation of operating performance. |