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M&M rises after Q4 PAT jumps over four-fold to Rs 1,292 cr

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Capital Market
Last Updated : May 30 2022 | 10:16 AM IST

Mahindra & Mahindra (M&M) gained 1.55% to Rs 967.95 after the vehicle manufacturer reported a 427% jump in standalone net profit before exceptional items to Rs 1,292 crore in Q4 FY22 as compared with Rs 245 crore in Q4 FY21.

Revenue rose by 28% year on year to Rs 17,124 crore during the quarter ended 31 March 2022. Profit before tax surged 147.8% to Rs 1,572 crore during the period under review.

EBITDA fell by 0.5% to Rs 1,946 crore in Q4 FY22 from Rs 1,955 crore in Q4 FY21. EBITDA margin fell to 11.4% in Q4 FY22 from 14.6% in Q4 FY21.

The company said it sold 1,52,204 vehicles in Q4 FY22, which jumped 43% from 1,06,333 vehicles sold in the same period last year. Tractor sales in Q4 FY22 amounted to 72,058 units, declining 23% year on year.

On a consolidated basis, M&M's net profit before exceptional items from continuing operations surged 48% to Rs 2,237 crore on a 21% increase in revenue to Rs 25,934 crore in Q4 FY22 over Q4 FY21.

On full year basis, the vehicle manufacturer reported a 401% jump in standalone net profit to Rs 4,935 crore on a near 29% rise in revenue from operations to Rs 57,446 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.

Anish Shah, managing director & CEO of M&M said, Our performance in Q4 and FY22 underscores the resilience of our business model. Despite significant challenges due to various factors like Covid, commodity prices, semiconductor shortages and the Ukraine conflict, we have delivered strong results at the consolidated level. All of our group companies are well positioned to capitalize on growth opportunities".

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Rajesh Jejurikar, executive director of M&M said, "We recorded our highest revenue for Auto and Farm segment in FY22. M&M became No.1 in SUV Revenue Market Share in Q4 and H2 FY22, while FES gained 180 basis points market share in FY22. With 170k+ bookings, the demand for the automotive product portfolio remains strong. FES delivered second highest full year PBIT despite market slowdown and steep commodity inflation. Given the recent fiscal and monetary measures by Government of India and RBI, we foresee the cost pressures in the economy to ease out".

Manoj Bhat, group chief financial officer at M&M said, "Our focus on capital allocation and improved financial metrics continues to deliver results. We continue on our journey towards 18% return on equity (ROE)".

The board recommended a dividend of Rs 11.55 per equity share for the financial year ended 31 March 2022.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

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First Published: May 30 2022 | 9:26 AM IST

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