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 - JPMorgan Chase & Co, Research Division - Analyst
: Really impressive presentation. So thanks for sharing all those details.
I had two questions. Firstly, given a large part of this capital allocation fix that we've been talking about is well executed, is there any assessment
of the capital commitment that we will now see in the underlying subs, be it listed, unlisted? And also, if you can talk about the core CapEx
requirements?
Anish Shah - Mahindra & Mahindra Limited - Group CFO, Deputy MD. Member of the Group Executive Board & Additional Director
I'll take that, Gunjan. And in terms of core Capex, we have talked about INR 9,000 crores for the next cycle, which is down from INR 12,000, the next
cycle for 3 years starting F '22.
And what we have also said earlier is once we've finished the capital allocation actions, we will come back with a range that we expect for capital
required for subsidiaries. I can say today that it will be a lot lower than what we've seen in the past because a lot of the capital that has gone for
our loss-making international subsidiaries will not be required again. A number of them are starting to generate cash as well, but the specific range
that you're looking for, that we will come back with once the capital allocation exercise is completed, because that will give us a sense of which
entities are staying, what are the milestones, what capital they require.
The one boundary that we have also created is that any cash generation from auto and farm will not be used for other investments. So capital
required for other investments will be generated from those group companies, and we will therefore categorize that.
It does not completely answer your question as yet because your question also is the cash needed by auto and farm, how much of that will be used
for international subsidiaries of auto and farm. That, as I said, we will come back once the capital allocation is 100% complete.
Question: Gunjan Prithyani - JPMorgan Chase & Co, Research Division - Analyst
: This is helpful. Just out of curiosity, how come you don't have electric in the growth businesses that you've laid out, just Susten and Accelo? How
come electric is not there given you are doing so much?
Rajesh Ganesh Jejurikar - Mahindra & Mahindra Limited - Additional Director & Executive Director of Automotive and Farm Sectors
No. It was actually there. It was actually there. It was in auto. It was there under auto. And it's also there under the gems. So it has already come
twice, I think. That's why, I'm listening and somebody already told him it's in too many places now.
|
