Mahindra and Mahindra (M&M) reported a 60 per cent jump in its consolidated profit after tax (PAT) to Rs 3,508 crore, riding on a 19 per cent year-on-year (YoY) rise in its revenues to Rs 33,892 crore.
On a quarter-on-quarter (QoQ) basis, PAT jumped 33 per cent while income from operations has grown by 4.4 per cent. The M&M stock ended flat at Rs 1465.05 a piece. The board has recommended a dividend of Rs 16.25 per share.
The good numbers have come on the back of 2.2-times growth in profits at its automotive business, 58 per cent growth in Mahindra and Mahindra Financial Services (MMFSL) and 21 per cent growth in the farm equipment segment profits, the company said.
On a standalone basis (includes auto and farm segments), the PAT almost doubled to Rs 2,774 crore. The auto segment profits, however, include a one-time mark-to-market gain of Rs 405 crore on KG Mobility re-listing.
M&M chairman Anand Mahindra said at the company’s annual general meeting, “In spite of all this volatility, we have had great financial results. Over the last couple of years, we have taken a good, hard look at capital allocation and sharpened our strategies for growth. We have clearly identified the businesses that we are betting on for future growth and nurtured them. These strategies are paying off.”
He added: “We said we would reach 18 per cent ROE in 3 to 5 years. We achieved it in 18 months. We have just declared the highest dividend in our history. Our share price has gone up five times since the pandemic years. It has been a satisfying year.”
M&M sold 186,138 vehicles in all, a 21 per cent growth, but recorded a 3 per cent fall in tractor sales to 114,293 units.
It has an open booking for SUVs at 281,000 units as on August 2023, and its SUV production grew by 28 per cent YoY in Q1.
It now enjoys a 20.2 per cent revenue market share in the SUV segment in India.
In the farm vertical, farm machinery revenue was up 24 per cent and the company claimed the number 2 position in the rotavator market with a 23.5 per cent share.
Rajesh Jejurikar, executive director and CEO, auto and farm sector, said that the margins for the automotive business are back at the FY19 (pre-pandemic) levels and farm segment margins continue to improve.
Board approves merger of 3 subsidiary companies
M&M board has approved the merger of its wholly-owned subsidiaries Mahindra Heavy Engines (MHEL), Mahindra Two Wheelers (MTWL) and Trringo.com (TCL) with the company for streamlining the holding structure.