Mahindra & Mahindra on May 28 reported a 4.5 percent sequential decline in standalone net profit at Rs 1,292 crore for the March quarter.
It rose more than five times or 427 percent from a year ago when profit had taken a hit from an exceptional expense of Rs 753 crore, without which it would have been Rs 998 crore, and the profit in the quarter under review would have risen 17 percent.
Standalone revenues for the Mumbai based automaker rose 12 percent quarter on quarter to Rs 17,124 crore. On a yearly basis, they went higher by 28.4 percent.
“Our performance in the March quarter 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 capitalise on growth opportunities,” said Anish Shah, managing director and chief executive officer.
For the full year from April-March 2022, standalone PAT after exceptional item grew 401.5 percent to Rs 4,935 crore from profit after exceptional item of Rs 984 crore in the previous year. Without taking into consideration exceptional items for both the financial years, the profit for FY22 increased 26.4 percent to Rs 5,144 crore from Rs 4,071 crore in the last financial year.
Standalone revenues for FY22 jumped 28.7 percent to Rs 57,446 crore.
Consolidated numbers
On a consolidated basis, PAT rose 47.8 percent year on year to Rs 2,237 crore for the quarter under review. On a sequential basis, profit grew 12.6 percent.
Consolidated revenue for the quarter rose 21 percent year on year to Rs 25,934 crore. The sequential increase was 10 percent.
"We recorded our highest revenue for auto and farm segment in FY22,” said executive director Rajesh Jejurikar.
“With 170,000 plus bookings, demand for the automotive product portfolio remains strong as farm equipment sector (FES) delivered the second highest full year PBIT (profit before interest and tax) despite market slowdown and steep commodity inflation,” added Jejurikar. Given the recent fiscal and monetary measures, he foresees the cost pressures in the economy easing out.
Volumes
The firm registered a growth of 43 percent year on year in automotive sales volumes to 1,52,204 units during the quarter under review. Tractor volumes slumped 23 percent year on year to 72,058 units.
For the full year, automotive sales witnessed a growth of 31 percent to 4,55,570 units. Tractor sales growth in FY22 was flat at 3,50,981 units.
The market share for farm equipment sector tractors increased 1.8 percent year on year to 40 percent.
Exports for the automotive segment surged 77 percent in FY22 while exports for farm equipment sector were up 66 percent at 17,500 units.
The company saw more than 170,000 open bookings across products with 78,000 bookings open for its recently launched sport utility vehicle XUV7OO alone.
Margin
Standalone EBITDA (earnings before interest, tax, depreciation and amortisation) margin for the quarter under review declined 320 basis points year on year to 11.4 percent while on a sequential basis the fall was 40 bps. For the full year the decline in EBITDA margin was more pronounced at 330 bps to 12.3 percent compared to 15.6 percent for FY21.
The standalone net margin (before exceptional item) for the quarter slid 70 bps year on year to 6.8 percent but on a sequential basis the decline was 140 bps. For FY22, net margin was flat compared to nine percent last year.
Dividend
The company recommended a dividend of Rs 11.55 per ordinary (equity) share which is 231 percent of Rs 5 face value for the financial year ended March 2022.
The stock closed Rs 23.05 higher at Rs 952.85 on May 27 at National Stock Exchange. It has generated returns of 15 percent over the past one year and is up 2.8 percent during the past one month.
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