M&M posts Q4 profit of Rs 163 cr; announces dividend of Rs 8.75 per share

The company's revenue grew 48 per cent on a year-on-year (YoY) basis to Rs 13,338 crore from Rs 9,005 crore reported in the corresponding quarter last year

Mahindra & Mahindra, on Friday, reported consolidated profit of Rs 163 crore for the March quarter of 2020-21 (Q4FY21), which was impacted by one-time loss of Rs 840 crore. In comparison, M&M had reported a loss of Rs 3,255 crore in the year-ago quarter. The company has also announced highest-ever dividend of Rs 8.75 per share for FY21, to commemorate the 75th year of the company.

M&M's revenue grew 48 per cent on a year-on-year (YoY) basis to Rs 13,338 crore from Rs 9,005 crore reported in the corresponding quarter last year.

Analysts at Emkay had expected M&M to report Q4 revenue at Rs 13,001.5 crore while net profit was pegged at Rs 1,012.8 crore. READ MORE

Operating performance

The company reported earnings before interest, tax, depreciation, and ammortisation (Ebitda) at 1,960 crore. Ebitda margin came in at 14.7 per cent for the quarter as compared to 13.6 per cent reported in Q4FY20, despite a significant strengthening in commodity prices.

“The strong margins and turnaround of global subsidiaries in FES along with a robust automotive demand momentum through the focused SUV strategy has set the ground for us to now accelerate to fly,” Executive director Rajesh Jejurikar said.
 

The company said that the overall demand remained robust for the company’s automotive products in Q4FY21. However, the global shortage of semi-conductors impacted the production & sales for the quarter. 

Meanwhile, it also registered 58 per cent increase in tractor volumes while revenue grew 60 per cent despite supply chain and commodity challenges.

Stock reaction

M&M's stock rose as much as 2.58 per cent to Rs 850 on the BSE after the announcement of the March quarter results. At 2:55 PM, the stock traded 2.32 per cent up as compared to 0.6 per cent gain in the benchmark S&P BSE Sensex.