Auto major Mahindra & Mahindra on Friday reported a 22% year-on-year (YoY) increase in Q4 standalone net profit to ₹1,549 crore, falling short of analyst estimates. For FY23, net profit grew 34.5% to ₹6,549 crore from ₹4,870 crore in FY22, thanks to higher volumes and cooling inflation.
M&M’s standalone revenue in Q4 grew 31% YoY to ₹22,571 crore, beating analyst estimates of ₹21,899 crore. For FY23, its revenue grew 47% to ₹84,960 crore.
“Operational profits improved significantly, as a result of volume growth, timely pricing actions, easing commodity inflation and stringent control over fixed costs,” the company said in its exchange filing.
However, the lower share of farm equipment in total volumes during FY23 resulted in a decline in net margins, which fell to 7.7% from 8.4% in FY22.
“It has been a blockbuster year for the group. Auto led the way with record-breaking launches, as we regained the #1 position for SUV revenue market share. LCVs, farm equipment, and electric 3-wheelers continue to strengthen our leadership position,” said M&M chief executive officer and managing director Anish Shah.
M&M’s volume growth during Q4 was driven by the farm equipment segment, with tractor sales recording a 24% YoY growth to 89,128 units. On a full-year basis, both the automotive as well as farm equipment segments hit their respective all-time highs at 6.98 lakh units and 4.04 lakh units, respectively.
Overall, M&M’s total volumes surged 35% in FY23 to 1.1 million units, from 8.17 lakh units in FY22.
Driving the growth in the automotive segment were “successful mega launches”, the company said in a post-earnings press conference.
M&M also expanded its dominance in the sports utility vehicle (SUV) segment, increasing its revenue market share by 170 basis points YoY to 19.6%.
It said that the open bookings of its SUVs stood at 2.92 lakh as on May 1, further underlining its leadership position in this segment and also the strong demand momentum.
The company also declared a dividend of ₹16.25 per share. Its shares closed 0.3% higher on Friday, at ₹1,282 apiece.
