M&M Q4 net profit rises 32% to Rs 2,038 cr, declares Rs 21.10 dividend

Auto major Mahindra & Mahindra Ltd (M&M) said on May 16 that its standalone net profit rose 32 percent in March quarter to Rs 2,038 crore owing to robust performance of the automotive segment, favourable product mix, and operating leverage benefits. It reported standalone net profit of Rs 1,549 crore in the year-ago period.

The homegrown automaker’s standalone revenue from operations rose 11 percent to Rs 25,109 crore in Q4FY24 as against Rs 22,571 crore a year ago.

Mahindra & Mahindra said on Thursday it will invest Rs 12,000 crore in its electric vehicle (EV) unit, Mahindra Electric Automobile.

“It has been an excellent year with most of our businesses delivering a high level of performance. Auto continued its high growth trajectory, Farm gained share in a tough market and Mahindra Finance delivered on asset quality,” M&M Managing Director & CEO Anish Shah said.

The carmaker said its board approved dividend of Rs 21.10 per equity share of Rs 5 face value.

“We continue to be #1 SUV player by revenue and gained 3.5 percent market share in LCVs < 3.5T category. We also improved our Auto Standalone PBIT margin by 190 bps during this period. In tractors, we achieved a market share of 41.6, a gain of 40 bps during FY24, and improved our core tractor PBIT margins by 30 bps,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M

“Our disciplined capital allocation and sharp focus on operating metrics helped generate record cashflows in FY24. We also repaid debt of Rs 3,100 crore and delivered RoE of 18.4 percent,” said Manoj Bhat, Group Chief Financial Officer, M&M.

The results were surpassed analysts expectations as the Moneycontrol poll of six brokerage estimates forecast that M&M’s Q4FY24 net profit will rise to Rs 2,026 crore, up 2.5 percent from the year-ago period. It predicted that the company’s revenue from operations will increase by over 7 percent to Rs 24,182 crore from the same period last year.

At 2:25 pm on May 16, M&M’s shares were trading 0.8 percent higher at Rs 2,320 apiece.

“We will deploy Rs 37,000 crore from FY 2025-27, a major chunk will be spent on the automotive category. We will not ignore ICEV and a major chunk of our capex will be spent on that segment in the automotive segment,” said Anish Shah in a post-earnings press conference.

“We will launch 9 SUVs, 7 EVs, 7 LCVs by 2030,” said Rajesh Jejurikar.

Mahindra sold 27.2 percent more SUVs in the quarter from a year earlier.

The company’s automotive business brings in almost two-thirds of total revenue and includes the sale of commercial vehicles and SUVs such as Scorpio and Thar.

However, earnings for India’s largest tractor-maker by sales were pressured by a 21.5 percent fall in tractor and farm equipment sales, as sub-par rains affected rural demand.

Revenue from the automotive segment revenue rose 20 percent, while that of the farm equipment segment fell 13.1 percent, M&M said in a stock exchange filing.

With inputs from Reuters