The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gunjan Prithyani - JP Morgan Chase & Co, Research Division - Analyst
: Just 2 questions from my side. Firstly, on the SsangYong, I recall you, you guys had mentioned that we are looking at some of the cost controls.
But if I look at the SsangYong performance, I think the losses have further widened there. Could you provide some insights as to how we should
think about SsangYong, because markets still there is pressured and seeing high competitive intensity?
Question: Gunjan Prithyani - JP Morgan Chase & Co, Research Division - Analyst
: Okay. So if I look at the last 9 months or the 3 quarters, you said that the losses have been closer to about, I think, INR 1,100 crores. So this should
substantially come down according to you with these initiatives which are underway if I look at next year.
without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its
affiliated companies.
NOVEMBER 08, 2019 / 12:00PM, M&M.NSE - Q2 2020 Mahindra and Mahindra Ltd Earnings Call
Question: Gunjan Prithyani - JP Morgan Chase & Co, Research Division - Analyst
: Okay. And on the farm sets, I see that there has been some -- I mean at least we are not seeing those substantial losses that we saw in last couple
of quarters. So is that something which is now stabilized and all those one-off inventory-related write-off that we've taken in U.S. tractor, that is
behind, right?
Question: Gunjan Prithyani - JP Morgan Chase & Co, Research Division - Analyst
: Okay. And just last question on tractors. You did mention that at least rabi crop outlook is looking good, and there is at least optimism in the
industry. Would you be able to share any outlook for next year, given the -- at least even if let's assume the monsoon, we don't know about next
year, but water reservoir levels are reasonably in good shape. So is it fair to say that the industry can turn into positive growth next year as per your
assessment at the moment?
Question: Gunjan Prithyani - JP Morgan Chase & Co, Research Division - Analyst
: So I was going at calendar year, but no worries, I got the numbers.
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: Congratulations for making an impressive margin. I only have one question to Dr. Goenka. I want you to pick your brain on how you're planning
to meet the emission challenges on 2 fronts. I understand there's push and pull, one coming from the BS VI which can potentially reduce your
diesel mix? And the second coming from CAFE norm which would need a higher diesel mix to reduce your CO2 emission. What I understand, that
your response is to move swiftly towards electric vehicles over the next 2, 3 years before the much tougher CAFE norm kicks in from FY '23. Would
that imply that your overall profitability of the automotive division at least will start coming down as you shift towards more electric powertrain
to meet -- to balance the (inaudible) emission norms? And is my understanding of your response to the (inaudible) emission norms correct?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: Understood. So it's a long process. Over next 2, 3 years, gradually we'll move to that level. But during that transition, we could see some impact?
|
