M&M 4th quarter Profits Surge by 32% to ₹2,038 crore, Revenue too Climbs 11% YoY

Mahindra & Mahindra Ltd (M&M)

Mahindra & Mahindra Ltd (M&M) reported a 31.6% year-on-year increase in its net profit for the fourth quarter of the financial year 2024 (Q4FY24), reaching ₹2,038.21 crore. This growth was driven by an 11.24% rise in revenue from operations during the same period, which climbed to ₹25,108.97 crore from ₹22,571.37 crore in the previous year.

On the operational front, M&M’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the March quarter grew 12% year-on-year to ₹3,119 crore. However, the EBITDA margin remained unchanged at 12.4%.

Anish Shah, Managing Director & CEO of M&M Ltd, stated that the company’s auto division maintained its high growth trajectory, while the farm equipment segment gained market share in a challenging market, and Mahindra Finance delivered on asset quality.

During Q4FY24, M&M’s automobile segment volumes reached 2,15,280 units, representing a 14% year-on-year increase. However, the farm equipment segment experienced a 20% year-on-year decline, selling 71,039 tractors.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector) at M&M Ltd, highlighted that the company remained the #1 SUV player by revenue and gained 3.5% market share in the LCVs < 3.5T category. Additionally, the Auto Standalone PBIT margin improved by 190 basis points during this period. In the tractor segment, M&M achieved a market share of 41.6%, a gain of 40 basis points during FY24, and improved its core tractor PBIT margins by 30 basis points. The farm machinery segment continued to experience robust revenue growth of 32%.

The board of directors of M&M recommended a dividend of ₹21.10 per equity share, or 422% of the face value of ₹5 each. The record date for the dividend is July 5, 2024, and the dividend will be paid after July 31, 2024.

Furthermore, the board approved an investment of ₹12,000 crore in its electric vehicle (EV) unit, Mahindra Electric Automobile Ltd (MEAL), over the next three years until March 31, 2027.

M&M and its Auto Division expect to generate sufficient operating cash to satisfy all their capital investment needs and are not looking to raise additional capital. However, M&M and British International Investment (BII) have agreed to extend the timeframe for the final tranche of BII’s planned investment of ₹725 crore.

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