M&M Q4 PAT grows 18% to ₹2,637 crore, FY23 PAT up 56% at ₹10,282 crore

Mumbai: Managing Director and CEO of the Mahindra Group Anish Shah during the announcement of Mahindra and Mahindra Ltd. (M&M) financial results for Q4 and FY23, in Mumbai, Friday, May 26, 2023. (PTI Photo)(PTI05_26_2023_000136A)
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Mahindra & Mahindra Ltd. (M&M) reported that its fourth quarter consolidated net profit grew 18% to ₹2,637 crore from the same quarter last year led by enhanced profit from its auto and farm divisions. Profit from its hospitality and real estate businesses also contributed to the growth in profits.

For the fourth quarter ended March 31, 2023 the company’s consolidated revenue increased 25% to ₹32,366 crore.

For the full financial year, the company reported 56% growth in net profit at ₹10,282 crore compared to the previous year. Revenue increased 34% to ₹1,21,269 crore from the previous year, and this is the first time that annual PAT has crossed the ₹10,000 crore mark.

The board has announced a dividend of ₹16.25 per share, up 41%.

On a standalone basis the company reported Year on Year (YoY) growth of 22% in net profit at ₹1,549 crore. Annual net profit grew 34% YoY.

In the fourth quarter the company sold 1,89,227 vehicles, up 21% YoY. Tractor sales surged 24% to 89,128 units.

For the full year, the company reported 50% growth in vehicle sales YoY at 6,98,456 units. Tractor sales grew 15% YoY to 4,03,981 units.

“It has been a blockbuster year for the group,” said Anish Shah, MD & CEO, M&M. “Auto led the way with record-breaking launches. 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, ED & CEO (Auto & Farm Sector) of M&M said, “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.”

He said despite elevated commodity prices the company’s margins in FY23 have almost reached FY19 levels when commodity prices were comparatively very low.

He said the company will be able to substantially reduce the waiting period of its models in the next six months when production capacity for SUVs would increase from 39,000 units a month to 49,000 units.

Mr. Jejurikar said the company has a current booking for 2,92,000 units with 55,000 new bookings getting added every month. He said cancellation is less than 8%. This calendar year the company has no plans to introduce any new product and the five door ‘Thar’ will be introduced in 2024, he said.

He said the likelihood of El Nino this year will have no any impact on tractor sales. He also said that Mahindra’s electric super-car ‘Battista’ priced about ₹20 crore, will not come to India though its deliveries have started in Europe.

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