Mahindra & Mahindra (M&M) on Friday posted its fiscal fourth quarter profit at Rs 2,636.67 crore, up 17.8 per cent as against Rs 2,237.36 crore in the corresponding quarter of last year. It posted revenue from operations at Rs 32,365.60 crore, up 24.8 per cent in comparison to Rs 25,934.40 crore in the fourth quarter of FY22. For the full year, the company posted a profit of Rs 10,281.50 crore, up 56.3 per cent from the previous year. “This was driven by successful mega launches in Automotive, steady growth at Farm Equipment, strong operating performance at Financial Services and value unlocking through monetisation/partnerships,” it said in a regulatory filing. The Board also recommended a dividend of Rs 16.25, that is, 325 per cent per equity share of the face value of Rs 5 each for the financial year.
“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,” said Anish Shah, Managing Director & CEO, M&M Ltd.
M&M maintained that the company’s operational profits improved significantly, as a result of volume growth, timely pricing actions, easing commodity inflation and stringent control over fixed costs. M&M sold a total of 1,89,227 vehicles and 89,128 tractors during the quarter.
M&M’s segment wise performance
While M&M’s automotive business led the way with 62 per cent growth driven by strong execution of launches and an improvement in supply chain related issues, how did the company’s business verticals perform during the quarter?
The Automotive segment recorded the highest ever volumes at 698k in FY23, up 50 per cent. Consolidated automotive revenue for the quarter stood at Rs 16,742 crore, up 34 per cent in comparison to Rs 12,493 crore in Q4FY22. M&M said that the open bookings of SUVs was at 292K+ as on 1st May 2023, which reflects continued strong automotive demand. The company also launched its Bolero Maxx Pik-up range with iMaxx technology and segment first features.
In the Farm Equipment segment, M&M posted the highest ever volume at 404k in FY23, up 15 per cent. Consolidated revenue in the category stood at Rs 8,023.33 crore as against Rs 6,178 crore in the corresponding quarter last year. The company recently launched the refresh range of Swaraj tractors with new styling and additional features.
“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,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.
Meanwhile, M&M’s financial services clocked a revenue of Rs 3,420.49 crore, its hospitality segment posted revenue of Rs 711.66 crore and the real estate segment posted revenue at Rs 263.10 crore during the fourth quarter of FY23. Tech Mahindra revenue was up 19 per cent with focus on margin transformation. Mahindra & Mahindra Financial Services Limited recorded highest ever disbursements with AUM up 27 per cent and GNPA improving to 4.5 per cent. While Mahindra Lifespaces reported record residential pre-sales of Rs 1,812 crore, Mahindra Logistics revenue crossed Rs 5k crore, up 24 per cent. Club Mahindra recorded the highest ever annual upgrades and member additions of 17k, up 37 per cent.
“Secular revenue growth across the group along with strong operating leverage has helped us cross the milestone of Rs 10,000 crore in profits. Our sharp focus on capital allocation, monetization and innovative partnerships continues to unlock value,” said Manoj Bhat, Group Chief Financial Officer, M&M Ltd.
