Mahindra & Mahindra Ltd said on May 16 it will invest Rs 12,000 crore in its electric vehicle (EV) unit, Mahindra Electric Automobile, over a period of three years up to March 31, 2027.
Mahindra Electric Automobile Limited, a subsidiary of M&M, has been incorporated on October 25, 2022 in India. Total Income of MEAL for the year ended March 31, 2024 was Rs 56.96 crores.
Networth of MEAL as on March 31, 2024 stood at Rs 3,207.14 crore. The revenue from operations of MEAL for FY24 was nil.
In a stock exchange filing, M&M explained its investment rationale in MEAL.
"The investment will accelerate the growth of 4 (Four) Wheel Passenger Electric Vehicles Business and to get growth capital to fund the said
business. MEAL will significantly leverage the manufacturing capabilities
and product development of M&M as also its ecosystem of suppliers, dealers and financiers. The funds infused by M&M will be utilised by MEAL primarily to create and market a world-class Electric SUV portfolio with advanced technologies. The investment will help M&M to leverage their focus and expertise in ESG and climate change," said M&M.
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.
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