M&M Q1FY24 numbers came ahead of brokerage estimates helped by volume growth of 11%. EBIT margins for both auto and farm division have expanded. However, due to change in reporting structure numbers are not strictly comparable.
According to the M&M statement on the bourses, consolidated Q1FY24 revenue is up 19 per cent YoY to Rs 33,892 crore from Rs 28,414 crore in Q1FY23. Q1FY24 Profit After Tax is up 60 per cent YoY to Rs 3,508 crore from Rs 2196 crore in Q1FY23.
A breakup of the performance segment-wise indicates that in the auto business, SUV production has increased 28% YoY and SUV volumes crossed 1 lakh. Total auto volumes in Q1 is 186000, up 21% YoY. The auto segment’s revenue inflow is also up 20.2% in Q1.
The UV performance continues to be strong with 281000 open bookings. This includes 68000 open bookings for the Thar and 77000 open bookings for XUV700. The Scorpio N has been clocking a booking rate of 14000 every month totalling 117000 open booking.
However, short-term disruption in engine-related parts at the supplier end ans semiconductor supply constraints on Air Bag ECU impacted Q1FY24 volumes- about 5000 SUVs and 2000 units in Pik-Up volumes were impacted. That said the supply situation has improved and the company is on track to achieve Q4 F2Y4 exit capacity of 49000.
In last mile mobility, M&M clocked the highest ever electric three-wheeler volumes at 14,700 units in Q1FY24 and electric three-wheeler sales crossed 1 Lakh unit milestone.
The Farm equipment business also saw a steady upmove in revenue and profitability but volumes came in slightly lower YoY. The services business also portrayed a steady growth trajectory. The Electric arm recently saw significant fund raising. The company is on track to launch 5 electric SUVs between December 2024 and October 2026 built on the purpose-built, ground-up Inglo platform.
