New Delhi: SML Isuzu Ltd. (SMLI) on Friday, May 30, 2025, announced its audited financial results for the fourth quarter and full year ended March 31, 2025. The commercial vehicle manufacturer reported a consolidated net profit of ₹52.95 crore for Q4 FY25, a marginal increase of 1.20% from ₹52.32 crore in the corresponding quarter of the previous year (Q4 FY24). However, the profit saw a significant sequential jump from ₹0.53 crore reported in Q3 FY25.
The company's Board of Directors also recommended a final dividend of ₹18 per equity share (180%) of face value ₹10 each for the financial year 2024-25, amounting to a total payout of ₹26.05 crore. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).
In a major corporate development highlighted in the notes to the financial results, promoter Sumitomo Corporation (Japan) and public shareholder Isuzu Motors Limited (Japan) have entered into Share Purchase Agreements with Mahindra & Mahindra Limited (M&M) on April 26, 2025. M&M is set to acquire 63,62,306 equity shares (43.96%) from Sumitomo and 21,70,747 equity shares (15.00%) from Isuzu at ₹650 per share. Subsequently, M&M announced an Open Offer on May 5, 2025, to acquire up to 37,62,628 equity shares (26%) from public shareholders at ₹1,554.60 per share. These transactions are subject to customary conditions precedent, including approval from the Competition Commission of India (CCI).
| Metric | Q4 FY25 | Q4 FY24 | YoY Change (%) | Q3 FY25 | QoQ Change (%) | FY25 | FY24 | YoY Change (%) |
|---|---|---|---|---|---|---|---|---|
| Revenue from Operations | 771.38 | 679.60 | +13.50% | 331.80 | +132.48% | 2,398.99 | 2,195.93 | +9.25% |
| Total Income | 773.10 | 681.62 | +13.42% | 333.43 | +131.86% | 2,405.05 | 2,201.34 | +9.25% |
| EBITDA | 92.16 | 73.22 | +25.87% | 19.96 | +361.72% | 240.61 | 184.32 | +30.54% |
| EBITDA Margin (%) | 11.95% | 10.77% | +118 bps | 6.02% | +593 bps | 10.03% | 8.39% | +164 bps |
| Profit Before Tax (PBT) | 71.14 | 50.40 | +41.15% | 0.75 | +9385.33% | 162.38 | 106.45 | +52.54% |
| Net Profit | 52.95 | 52.32 | +1.20% | 0.53 | +9890.57% | 121.67 | 107.88 | +12.78% |
| EPS (Basic & Diluted, in ₹) | 36.60 | 36.14 | - | 0.36 | - | 84.08 | 74.54 | - |
Detailed Financial Performance
For the fourth quarter of FY25, SML Isuzu's revenue from operations stood at ₹771.38 crore, marking a 13.50% increase year-on-year (YoY) from ₹679.60 crore in Q4 FY24. Sequentially, revenue surged by 132.48% from ₹331.80 crore in Q3 FY25, indicating a strong recovery in the last quarter.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 FY25 was ₹92.16 crore, up 25.87% YoY from ₹73.22 crore. The EBITDA margin improved to 11.95% in Q4 FY25 from 10.77% in Q4 FY24. Profit Before Tax (PBT) for the quarter rose by 41.15% YoY to ₹71.14 crore. The relatively modest growth in net profit (1.20% YoY) despite a strong PBT growth was primarily due to tax expenses in Q4 FY25 (₹18.19 crore) compared to a tax credit of ₹1.92 crore in Q4 FY24.
Key expenses for Q4 FY25 included cost of materials consumed at ₹539.59 crore and employee benefits expense at ₹52.66 crore. Finance costs for the quarter were ₹8.93 crore.
Full-Year FY25 Performance
For the full financial year ended March 31, 2025, SML Isuzu reported a consolidated net profit of ₹121.67 crore, an increase of 12.78% from ₹107.88 crore in FY24. Revenue from operations for FY25 grew by 9.25% to ₹2,398.99 crore from ₹2,195.93 crore in the previous fiscal year. The company's PBT for FY25 stood at ₹162.38 crore, up 52.54% YoY, while EBITDA for the year rose 30.54% to ₹240.61 crore. The EBITDA margin for FY25 improved to 10.03% from 8.39% in FY24.
Dividend Announcement
The Board of Directors has recommended a final dividend of ₹18 per equity share, which translates to 180% of the face value of ₹10 per share. This dividend is for the financial year 2024-25 and is contingent upon shareholder approval at the upcoming AGM. The total dividend outgo will be ₹26.05 crore. The record date and payment date for the dividend will be announced in due course.
Other Key Decisions from the Board Meeting
Apart from the financial results and dividend, the Board took several other important decisions:
- Appointment of Secretarial Auditor: M/s A. Arora & Co., a peer-reviewed proprietorship CS firm, has been appointed as the Secretarial Auditor for a term of five years, from FY 2025-26 to FY 2029-2030, subject to shareholder approval.
- Management Changes: The Board noted the completion of tenure of Mr. M.S. Ramta, Senior Management Personnel, as ED-Works, effective May 31, 2025. In the interim, Mr. Sandeep Chandna (Chief General Manager-Production) will oversee HR, Production, and other plant-related functions, while Mr. Vikas Sharma (Chief General Manager-R&D) will manage R&D and Quality Assurance functions. Both will report directly to the MD & CEO, Mr. Yasushi Nishikawa.
- Borrowings: The company provided details of its outstanding qualified borrowings. As of March 31, 2025, outstanding qualified borrowings stood at ₹96.74 crore, up from ₹65.63 crore at the start of the fiscal year. Incremental borrowings during FY25 amounted to ₹58.09 crore (long-term). The company holds an ICRA AA- (stable) credit rating as of March 31, 2025, and confirmed it is not a Large Corporate as per SEBI criteria.
Auditor's Opinion and Corporate Governance
The statutory auditors, M/s Walker Chandiok & Co LLP, Chartered Accountants, have issued an unmodified audit report on the financial results for the year ended March 31, 2025. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS).
The company also disclosed that it had received an anonymous complaint alleging financial dealings by some employees with specific dealers. An external expert investigated the matter, and their report was submitted to the Audit Committee. A sub-committee of two independent directors has been formed to further examine the matter. Management is confident that this issue will not have a material impact on the financial results.
Strategic Shift: Mahindra & Mahindra's Proposed Acquisition
The most significant development for SML Isuzu is the impending change in ownership structure. The move by Mahindra & Mahindra to acquire a controlling stake (Sumitomo's 43.96% and Isuzu's 15.00%, totaling 58.96%) and the subsequent Open Offer for an additional 26% could reshape SML Isuzu's strategic direction. The acquisition price of ₹650 per share for the promoter and Isuzu stake contrasts with the Open Offer price of ₹1,554.60 per share for public shareholders. This transaction, once approved by the CCI, will bring SML Isuzu under the Mahindra Group, potentially leading to synergies in manufacturing, R&D, and market reach within the Indian commercial vehicle sector.
The Board meeting commenced at 11:00 A.M. and concluded at 01:55 P.M. on May 30, 2025.
