Tag: Mahindra & Mahindra

M&M ED and CEO shares EV plans, says ready to compete with anyone amid Tesla entry news

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Despite a slowdown in EV sales globally, Mahindra and Mahindra aims to stick to its original EV plans. Rajesh Jejurikar, ED and CEO (Auto and Farm Business), M&M said, “We’re confident about our EV sales. Our EV design and technology will create a different category in the Indian market. The Indian government is focused on electrification, which is the right solution.”

When asked about Elon Musk’s global EV behemoth Tesla’s entry into India, Jejurikar said for now, it sounds speculative. “Let’s wait and watch how and when Tesla enters India. New entrants to help to grow the EV category, we’re ready to compete with anyone on a level playing field,” he told CNBC-TV18 on the sidelines of the unveiling event of its new compact SUV XUV 3XO.

With XUV 3XO, the Indian carmaker Mahindra and Mahindra aims to capture a larger market share of the SUV market. “3XO is a disruptor product…we have tried to excel in every dimension,” he said.

Jejurikar pointed out that M&M wasn’t successful in the compact SUV segment earlier but the company has set high hopes with the new launch. XUV 3XO comes with many segment-first features and aggressive pricing, he said.

“Over the next 2-3 years, we want to become the number one player in the compact SUV segment,” the top boss said, adding that three successful SUV launches have made M&M number 1 SUV player in the industry in terms of revenue market share by volume.

Also Read: Anand Mahindra to critics: ‘Your scepticism fuels our fire,’ responds by launching XUV 3XO amidst competition

Mahindra’s XUV 3XO, which will be manufactured at the plant in Maharashtra’ Nashik, has been launched in eight variants. “The ₹7.49 lakh variant is for entry level customers with many features at this price point. The gasoline automatic transmission variant has been priced below ₹10 lakh which can be a gamechanger,” Jejurikar explained.

M&M also wants to create its market in the higher priced variants. “Many customers don’t want a full size SUV but a feature rich SUV. The XUV 3XO’s X7 and AXL variants can take on a full size SUV and can create a very different category,” he asserted.

The XUV 3XO is the first product to be launched by M&M in the new financial year and more products are lined up. Mahindra’s ED said, “We’re hoping that XUV 3XO will build volumes for the company. We will launch five door Thar and new EVs in early 2025. Truly exciting time ahead for M&M this year,” he added.

Also Read: M&M in fast lane: Stock hits record high to become top Nifty 50 gainer after XUV 3XO launch

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M SUVs will soon come with Volkswagen unified cells — and the street’s excited

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra and Mahindra (M&M) shares jumped 5% to hit a fresh 52-week high on Friday, February 16, after the $26 billion Indian auto giant announced that it would buy parts from Volkswagen for the cars made in India.

Volkswagen will supply some electric components and unified cells to start with and may expand the collaboration in the future. The unified cell concept, the German carmaker claims, can halve the cost of a battery that goes into electric vehicles.

The Mumbai-based Indian automaker also told the bourses that it would be the first company other than Volkswagen to use the unified cell concept.
Mahindra plans to launch five all-electric SUVs in India based on its electric platform INGLO, starting December 2024.

The supply deal that runs over several years will have a volume of about 50 GWh over a lifetime.

The electrification of the passenger vehicle segment is likely to gain significant momentum in the coming years in India, which has emerged as the largest automotive market in the world with more than 5 million vehicles per year, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra & Mahindra Q3 earnings preview: Revenue likely to rise by 17%, margin may see slight dip

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indian automotive giant Mahindra & Mahindra (M&M) is gearing up to unveil its financial performance for the third quarter of fiscal year 2023-24 on February 14, 2024.

According to a CNBC-TV18 poll, the anticipated Q3 revenue for Mahindra & Mahindra stands at ₹25,400 crore, reflecting a 17% growth compared to the same quarter last year, where the company reported ₹21,653 crore.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to rise by 14% to ₹3,225 crore against ₹2,814 crore reported in Q3 of FY23.

However, the street expects a marginal dip in the margin, from 13% in Q3 of FY23 to 12.6% in the current quarter. Meanwhile, the profit after tax (PAT) is predicted to surge by 54% to ₹2,353 crore.

One of the key drivers of Mahindra & Mahindra’s growth is anticipated to be the 11.1% year-on-year increase in overall volumes, reaching 3,13,000 units compared to 2,81,000 units in tmhe corresponding quarter last year.

This strong performance is primarily attributed to the robust growth in the automotive sector. However, challenges persist in the tractors business due to the high base established last year and the impact of uneven rainfall.

The company’s stock traded on Tuesday with a minor decline of 0.6% at ₹1,650 per share. The Mumbai headquartered company boasts a market capitalisation of ₹2,04,778 crore. Over the last six months, the company has delivered a 6% return to its shareholders.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra Holidays shares gain over 4% amid top management changes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra Holidays and Resorts India Ltd on Friday, February 2, announced key appointments at the top management level following the resignation of its Managing Director and Chief Executive Officer Kavinder Singh, who was at the helm of the company for over nine years.

Shares of the Mahindra group company gained over 4% to trade near 52-week high levels at ₹462.65 apiece on BSE in morning deals. The stock later pared some of the gains and was trading 4.47% higher at ₹421.60 at 11.07am.

The company in a stock exchange filing said its board of directors in a meeting held on Friday approved the appointment of Manoj Bhat as the new managing director and CEO with effect from May 17.

Meanwhile, Amarjyoti Barua, the executive vice-president – group strategy, will lead the Mahindra Group’s finance organisation as the group CFO, effective May 17.

The board has also approved the appointment of Vimal Agarwal as the chief financial officer. He will take charge on May 1.

The Mahindra group company in a release said that Kavinder Singh has decided to resign from the company with effect from May 16, 2024, to take on the next challenge in his professional journey.

Kavinder Singh joined the Mahindra Group in 2014 as the Managing Director and CEO of MHRIL. Singh focused on making MHRIL a world-class vacation ownership company and creating differentiated experiences for Club Mahindra members.

MHRIL said that Manoj Bhat is currently the President and Group Chief Financial Officer of M&M Ltd. He was the CFO of Tech Mahindra before moving to Mahindra and Mahindra in April 2021.

“As the group CFO, Manoj led the group’s finance leadership team, working closely with the CFOs of group companies focusing on the governance, controllership, and capital allocation discipline across the group,” the company stated.

Bhat played a major role in Tech Mahindra’s organic and inorganic growth and was part of the acquisition and integration of Satyam.

Also Read: Suzlon confident of better results in March quarter, to execute order book in two years

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra & Mahindra Financial Services optimistic about growth despite profit dip

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra & Mahindra Financial Services, the financial services arm of Mahindra Group, despite posting a 12% decline in net profit for the October-December quarter of FY24, remains optimistic about its growth prospects.

Sharing key insights into the company’s performance, Ramesh Iyer, Vice Chairman & Managing Director of Mahindra & Mahindra Financial Services, said on Wednesday (January 31) that the company is committed to improving margins through strategic initiatives.

While talking to CNBC-TV18, Iyer highlighted the impact of Reserve Bank of India (RBI) norms on gross non-performing assets (NPA), suggesting that without the norms, the gross NPA would have been 1% higher than reported.

He emphasised that the company’s provisions under the Income Recognition and Asset Classification (IRAC) norms are currently lower than the Ind AS provision.

Regarding the cost of borrowing, Iyer expressed hope for a decline in FY25.

Despite a 20 basis point increase in the current quarter, he mentioned that the company is managing well through a mix of funds and leveraging various borrowing products available for non-banking financial companies (NBFCs).

Iyer discussed the company’s revised targets, stating a goal to achieve a Net Interest Margin (NIM) of 7% by March, compared to the earlier guidance of 7.5%.

He attributed this adjustment to the current elevated borrowing costs.

Iyer expressed confidence in achieving the target once borrowing costs decrease, and he highlighted the company’s commitment to improving margins through strategic initiatives.

Addressing growth strategies, the company’s Vice Chairman identified key areas contributing to Mahindra & Mahindra Financial Services’ expansion.

The company sees significant traction in the pre-owned vehicle segment, citing strong demand and market share gains. Iyer emphasised the growth potential in this segment, especially amid challenges faced by the new car market.

Iyer conveyed that sentiments continue to be strong, and the company is holding onto its FY25 Assets Under Management (AUM) guidance of 20-25%.

He highlighted the overall collection efficiency remaining above 95% in the current year and the consistent reduction in gross Stage 3 numbers every quarter.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Motilal Oswal expects 21% upside to Mahindra and Mahindra stock on strong growth prospects

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Brokerage house Motilal Oswal Financial Services (MOSL) is bullish on Mahindra and Mahindra (M&M) as the automaker is poised to report strong performance across its verticals.

The broking firm has reiterated its “buy” ratings on the stock of M&M with a target price of ₹2,005 apiece, indicating a 21% upside to Tuesday’s closing price of ₹1,656.3 apiece on BSE.

In its research, the brokerage firm said that M&M poised for strong performance across its verticals, with an anticipated 12.5% revenue growth from the financial year (FY) 2023 to FY26.

It added that the Passenger SUV segment is expected to exhibit an impressive 14% volume compound annual growth rate(CAGR) during this period. Additionally, FY25 is projected to be a favorable year for the tractor industry.

Despite these positive prospects, the core P/E ratio of 17X FY25 EPS (earning per share) suggests that the company’s valuation remains attractive when compared to its peers. This metric indicates a relatively reasonable price in relation to its earnings for the fiscal year 2025.

M&M posted a 16% surge in standalone revenue at ₹24,310 crore for the September quarter.

Growth in the topline came from the automotive business, which rose by 22% year-on-year to ₹18,405 crore. However, the company’s farm equipment business remained flat at ₹5,919 crore, compared to ₹5,944 crore during the same period last year.

Mahindra and Mahindra shares were trading 0.21% lower at ₹1,652.9 apiece at 9:58am on Wednesday, January 3.

Also Read: Adani-Hindenburg case: Supreme Court tells SEBI to see if the US short seller broke any Indian law

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M to not increase stake in RBL Bank until it sees ‘compelling strategic value’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra & Mahindra Ltd. does not plan on increasing its stake in Mumbai-based private lender RBL Bank Ltd. unless it sees compelling strategic value at some point in the future.

The automaker had acquired a 3.5 percent stake in RBL Bank on July 26 for Rs 417 crore last week and had mentioned that ‘under no circumstances’ would the stake go beyond 9.9 percent. The acquisition was a confirmation of a CNBC-TV18 newsbreak from earlier in the day.

“Our capital allocation framework remains unchanged,” the company said, adding that the investment is based on a long-term view of seven to ten years with a primary purpose to understand banking.

MD & CEO Anish Shah said that the RBL Bank investment is for the company to understand banking in a lot more detail. “At this stage, we will not raise stake further in RBL Bank,” Shah said.

“We saw an opportunity with an attractive valuation at less than 1 times price-to-book for a very solid bank with a strong management team,” M&M said. It is also looking to explore potential synergies with RBL Bank.

Shares of Mahindra & Mahindra are trading 0.5 percent lower at Rs 1,461.90, while those of RBL Bank are trading 2.1 percent lower at Rs 216.55.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra & Mahindra’s EV business likely to get another fund infusion: Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra & Mahindra Ltd.’s Electric Vehicle business is likely to get another round of fund infusion, people with knowledge of the matter told CNBC-TV18. The sources further said that a large asian fund is likely to be the investor in the EV business.

The fund infusion exercise in the EV business of M&M is likely to be completed in the next two weeks, the source added.

CNBC-TV18 has reached out to Mahindra & Mahindra for a comment on this story and is awaiting a revert.

In earlier interactions, the management of M&M has mentioned that they are open to raising funds for the electric SUV business. The company estimated an investment requirement of as much as Rs 10,000 crore for the EV business over the next two-to-three years.

In July 2022, M&M, along with British International Investment signed a binding agreement to invest as much as $250 million each into Mahindra’s EV subsidiary at a valuation of $9 billion.

Mahindra & Mahindra has been in the news through the course of last week after CNBC-TV18 reported that the company has acquired a stake of nearly  4 percent in Mumbai-based private lender RBL Bank Ltd.

In response, both entities confirmed the investment, with the automaker saying that under no circumstances will the current 3.5 percent strategic investment go past 9.9 percent.

Shares of Mahindra & Mahindra spiked post the CNBC-TV18 newsbreak, currently trading 1.75 percent higher at Rs 1,501.75.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 newsbreak confirmed: M&M buys 3.53% in RBL Bank for Rs 417 crore, open to more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Mahindra Group has picked up a minority stake in RBL Bank at Rs 197 per share, and as of July 21, 2023, holds a 3.53 percent stake in the bank. In a statement, M&M has said the purchase cost it Rs 417 crores. This development was also confirmed by RBL Bank in its independent statement. CNBC-TV18 had reported earlier in the day, quoting sources that M&M had picked up nearly 4 percent in the bank, and was open to more.

M&M has confirmed its willingness to acquire a larger stake in the bank as well. “We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9%,” the company said in its statement. M&M will need RBI approval to hike its stake in RBL Bank beyond 5 percent as well.

The 10 percent limit M&M has flagged off is the upper shareholding limit allowed by RBI regulations to industrial houses in Indian banks. The rules also do not allow industrial houses to become promoters of banks, or grant them eligibility to apply for and hold a banking licence.

Shares of RBL Bank ended 7 percent higher on Wednesday following CNBC-TV18’s newsbreak. It closed at Rs 239.40/share, a 52-week high.

The exact date of this acquisition is not known, but as per the bank’s shareholding pattern at the end of the June quarter, Mahindra and Mahindra’s name did not appear in the list of public shareholders.

For M&M, the acquisition of this stake in the bank enhances its exposure to the Indian financial services sector. The group already owns non-banking financial company Mahindra & Mahindra Financial.

RBL Bank has had a bumpy last few years – from Vishwavir Ahuja stepping down as MD & CEO, to the Reserve Bank of India appointing its own official to the bank’s board in December 2021. These changes had put the private lender under the lens, raising questions over its financial and asset quality strength.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra & Mahindra becomes the first company to receive eligibility certificate under Auto PLI scheme

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Automaker Mahindra & Mahindra Ltd. has become the first company to receive the eligibility certificate under the production-linked incentive scheme for automobiles (Auto PLI). Therefore, the company can now receive subsidies from the government under the Rs 25,938 crore scheme.

The certificate for M&M was awarded by the Automotive Research Association of India, which is a testing agency under the Heavy Industries ministry. ARAI awarded the certificate to Mahindra Last Mile Mobility Ltd., for their flagship EV three-wheeler.

The formal SOP for application to Automotive PLI scheme was launched by MHI on 27 April 2023 facilitating a systematic smooth application process replete with necessary formats to be uploaded by the eligible applicants (Champion OEMs + Component Champions) through the MHI portal.

With this, Mahindra Last Mile Mobility becomes the first recipient to meet the criteria for the Automotive PLI certificate from ARAI for their commitment to indigenisation of advanced automotive technology products, thereby bolstering the domestic production ecosystem under the aegis of “Make in Bharat Abhiyan”.

Anand Mahindra in a tweet said “I am incredibly proud of our Mahindra Last mile mobility team led by Suman Mishra, CEO at Mahindra Last Mile Mobility who scripted a piece of history by qualifying for the first Production Linked Incentive certificate in the Auto industry. I know how many sleepless nights you guys put in to earn this privilege. Now let’s ensure that the government’s & the regulators’ trust in us is well-placed, by producing and selling vehicles in volumes that are of global scale.

The homegrown auto major Mahindra & Mahindra (M&M) reported a 22 percent jump in its standalone profit after tax at Rs 1,549 crore for the quarter ended March 31, 2023. The same was Rs 1,269 crore in the corresponding quarter of last fiscal and Rs 1,528 crore in the December quarter. The profit figure was much lower as against CNBC-TV18 poll of Rs 1,756 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow