M&m is prepared to launch bs-vi in every product: v s parthasarathy

The last quarter was very difficult for the industry for both tractors and auto segments, says V S PARTHASARATHY, Group CFO & Group CIO, Mahindra & Mahindra (M&M). In an

interview with _Swati Khandelwal_, Parthasarathy said, "M&M's margins have declined when compared on year-on-year (YoY) basis, but has grown 50 basis points (bps) in comparison

to the previous quarter of the last fiscal". M&M'S MARGINS HAVE BEEN HIT JUNE QUARTER. WHAT CAN BE THE REASON BEHIND THIS FALL? WHAT ARE YOUR GROWTH EXPECTATIONS FOR THE

FUTURE? The last quarter was very difficult for the industry in both tractor and auto segments. The industry declined a lot, and this fall was due to certain factors like rural stress. This

is the first time since 2001 when negative growth was seen in almost every category. But we are happy as our market share increased in every category. We have performed well in terms of

market share and volume in such difficult situations. Our margins for Q1FY20 stand at 14%, which stood at 15.8% last year. The same quarter of the corresponding year was the best in

decades/years. It was so good that our topline and bottomline grew by 25% and 50%, respectively. Improved conditions in the future will help us in posting better margins than last year, and

it will be supported by the benign material prices. WHEN IS THE TRACTOR SEGMENT LIKELY TO REVIVE? The government is starting investments in rural India, which can revive growth in these

areas. Good monsoon, which was a matter of worry earlier in June, and future predictions are hinting towards better future quarters. But providing predictions about the auto segment

doesn't seem to be a good thing at this juncture. We should wait to have a look at government steps and RBI policies and how they are regulated. As far as tractors are concerned, then I

feel it will grow by 6-8% in time to come despite a slowdown in the past four months. UPDATE US ON THE RESPONSE THAT M&M HAS RECEIVED FOR ITS NEW PRODUCTS, MAINLY SUVS AND MPVS, AND

EXPECTED GROWTH IN THE FUTURE? All three products, namely Marazzo, XUV300 and Alturas, that we launched have performed well. However, the demand doesn't revolve around our expectations

because the market is dull at present and there is a de-growth situation in the industry, but these products have kept us growing. We expect their demand will go up as soon as there is an

improvement in the industry. WILL YOU PROVIDE CERTAIN DISCOUNTS ON YOUR EXISTING PRODUCTS TO ATTRACT PEOPLE AND WHAT ARE YOUR EXPECTATION FROM THE FESTIVE SEASON OF THE YEAR? I believe if

you improve the features of the products and take the reduced finance cost to the customers and transfer the benefits of government decisions to the customers, it will act as a gift for them

for the season. So, we will not talk about discounts, but try to take the products to the customers at the right time and see the ways to increase our production among others. HOW PREPARED

YOU ARE FOR THE LAUNCH OF THE M&M'S BS-VI COMPLIANT VEHICLES AND ARE YOUR BS-VI PRODUCTS ARE READY? We are doing good and are prepared to launch BS-VI in almost every product and

can do so. M&M in a recent press meet has demonstrated the complete range of BS-VI products in front of everyone and informed them about our readiness and how we can bring it out on time

and at a good cost for the customers. So, we are ready, we are able, and we are willing. _ZEE MEDIA NEWSROOM_