Mahindra & Mahindra posted a net profit of Rs 1,549 crore for the quarter ended March, up from Rs 1,268 crore in the base quarter. The net profit was up 22.1 percent and up 67 percent YoY including exceptional items. Analysts' expectations on the YoY increase had varied between 39-69 percent.
Revenue for the quarter came at Rs 22,571,4 crore, up 31 percent from Rs 17,237 crore in the same quarter of the previous fiscal. Revenue growth was above analyst estimates of 28-29 percent growth.
The stock was trading closer to Rs 1,283 at 3.10 pm today, up 0.40 percent from its previous close.
Brokerages were expecting revenue to be between Rs 21,890 crore and Rs 22,042 crore, and net profit to be between Rs 1,620 crore and Rs 1,948 crore.
For FY23, the company posted an posted an all-time high record annual net profit of Rs 10,282 cr, up 56%. "This was driven by successful mega launches in Automotive, steady growth at Farm Equipment, strong operating performance at Financial Services and value unlock through monetisation/partnerships," said company statement.
The automotive and farm-equipment segments recorded the highest ever volumes. The former saw sales of 6,98,000 units in FY23, up 50 percent; while the latter saw volumes hit 4,04,000, up 15 percent.
Revenue grew 34% over FY22, on "strong volume momentum across all key businesses"; and the automotive vertical "led the way with 62% growth, driven by strong execution of launches and an improvement in supply chain related issues".
"Operational profits improved significantly, as a result of volume growth, timely pricing actions, easing commodity inflation and stringent control over fixed costs," read the statement.
Dr. Anish Shah, Managing Director & CEO, M&M said, “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. Amongst the group companies, MMFSL turnaround is clearly visible with record disbursement and improved asset quality."
New platform for tractors
The company is set to roll out a new platform for lightweight Swaraj Tractors, said Rajesh Jejurikar, Executive Director (Auto & Farm Sectors) of Mahindra & Mahindra Ltd.
To be launched in five states, the range will have updated styling that will "appeal to young and new customers while retaining the loyalists", said M&M's Jejurikar. The platform for the company's lightweight tractors will be launched on June 2 and will sport engines with 25 and 29 horsepower in the portfolio.