The ratings also factor in the cyclicality of the M&HCV industry is cyclical and has started showing signs of slowdown. It and is likely to continue in near term. The ratings, however, continue to favourably factor in the strong technological, managerial and financial support that MNEPL derives from its parents, Mahindra & Mahindra (AA+) and Navistar International Corp (B2/Negative by Moody's). MNEPL reported a net loss of Rs. 64.8 crore in 12 months year ended March 2012, up from net loss of Rs 50.4 crore in 2010-11. However, it operating income rose more than three times in FY12 to Rs 116.5 crore from Rs 46.2 crore a year ago. MNEPL is a 51:49 joint venture between M&M and Navistar Inc. Navistar Inc. is the largest North American producer of mid-range diesel engines and class 6-8 commercial trucks and buses.