Mahindra & Mahindra (M&M) on Friday reported a 18 per cent rise in consolidated profit after tax at Rs 2,637 crore for the fourth quarter of Financial Year 2022-23 (Q4 FY23), compared to Rs 2,237 crore in the same period in FY22 and helped by robust performance by its businesses.
The Mumbai-based company’s revenue from operations in Q4 FY23 increased 31 per cent at Rs 22,571.4 crore, from Rs 17,237 crore in Q4 FY22.
M&M said that on a consolidated level for full FY23 it made a record annual net profit of Rs 10,282 crore, up 56 per cent and driven by successful launches by the automobile unit, growth in farm equipment, strong operating performance by the financial services division and value unlocking through monetisation/partnerships.
“It has been a blockbuster year for the group. Auto led the way with record-breaking launches, as we regained the top spot for SUV revenue market share. LCVs, farm equipment, and electric 3 wheelers continue to strengthen our leadership position,” said Anish Shah, managing director and chief executive officer (CEO) of M&M.
The auto segment’s standalone revenue in Q4 FY23 increased 35 per cent at Rs 16,400 crore. The standalone revenue of the farm equipment segment increased 29 per cent to Rs 5,584 crore.
Q4 PBIT (profit before interest and tax) margin for the automotive segment was at 7.3 per cent, up 190 bps. For the farm sector the PBIT margin was at 16.7 per cent, up 100 bps.
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On the operational front, EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased 44.5 per cent to Rs 2,797.4 crore from Rs 1,936 crore in Q4 FY23. Ebitda margin in FY23 improved 120 bps to 12.4 per cent from 11.2 per cent, year-on-year.
“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 of M&M.
Operational profits improved significantly as a result of volume growth, timely pricing actions, easing commodity inflation and stringent control over fixed costs
“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,” said Rajesh Jejurikar, executive director and CEO (Auto and Farm Sector), M&M.
At a board meeting to approve the quarterly results, M&M announced a dividend of Rs 16.25 per share for FY23.
M&M’s stock closed at Rs 1,277, down 0.06 per cent on the BSE.
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