21-May-2024Today's Market Indicators

M&M Q4 PAT rises 22% YoY to Rs 1,549 cr; board OKs dividend of Rs 16.25/share
(15:13, 26 May 2023)
The passenger vehicle maker said that its operational profits improved significantly, as a result of volume growth, timely pricing actions, easing commodity inflation and stringent control over fixed costs.

Profit before exceptional items stood at Rs 2,222.92 crore in Q4 FY23, registering a growth of Rs 56.92% from Rs 1,416.62 crore recorded in the corresponding quarter previous year. The auto major reported an exceptional loss of Rs 511.83 crore, representing impairment provision for certain long-term investments, and gain on sale of certain investments.

EBITDA grew 44% to Rs 2,797 crore in Q4 FY23 from Rs 1,936 crore posted in Q4 FY22. EBITDA margin was at 12.4% in Q4 FY23 as compared to 11.2% recorded in the same period last year.

M&M sold 1,89,227 vehicles in Q4 FY23, recording a growth of 21% as against 1,55,906 vehicles sold in the same quarter a year ago. Total tractors sold in Q4 FY23 stood at 89,128 units, rising 24% year on year.

The company's revenue from the Auto segment was Rs 16,400 crore (up 34.59% YoY), Farm Equipment Sector (FES) revenue was Rs 5,584.32 crore (up 29.05% YoY) in Q4 FY23.

Automotive segment growth was driven by strong execution of launches and an improvement in supply chain related issues.

On consolidated basis, the vehicle manufacturer reported 14.96% increase in net profit to Rs 2,998.37 crore on 24.8% rise in revenue from operations to Rs 32,365.60 crore in Q4 FY23 over Q4 FY22.

On full year basis, the vehicle manufacturer reported a 34.47% rise in standalone net profit to Rs 6,548.64 crore on a 47.02% jump in revenue from operations to Rs 84,960.26 crore in the financial year ended 31 March 2023 over the financial year ended 31 March 2022.

Dr. Anish Shah, managing director & CEO, M&M, said, ?It has been a blockbuster year for the group. Auto led the way with record-breaking launches, as we regained the #1 position for SUV revenue market share. LCVs, Farm equipment, and electric 3 wheelers continue to strengthen our leadership position. Amongst the group companies, MMFSL turnaround is clearly visible with record disbursement and improved asset quality. Our growth gems continue to execute on their scale-up strategy. We are very well positioned for the future, based on a strong presence in key industries, leadership in technology and a growth mindset, coupled with fiscal discipline.?

Rajesh Jejurikar, executive director, M&M, said, ?We are excited about the market momentum in both the auto and farm equipment segments and about crossing the milestone of 1.1 million vehicles in FY23. The response to new products has been very good with exciting new launches planned over the next 12 months. The efforts on cost management have led to consistent margin improvement.?

Manoj Bhat, Group chief financial officer, M&M, said, ?Secular revenue growth across the group along with strong operating leverage has helped us cross the milestone of Rs 10,000 cr in profits. Our sharp focus on capital allocation, monetization and innovative partnerships continues to unlock value.?

Meanwhile, the automobile major recommended dividend of Rs 16.25 per ordinary (equity) share.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

Shares of Mahindra & Mahindra rose 0.34% to Rs 1,281.85 on the BSE.

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