 "Mahindra and Mahindra, M&M")
Mahindra and Mahindra (M&M) has reported a 4 per cent jump in consolidated net profit for the fourth quarter of the 2023-24, riding on a 9 per cent year-on-year (Y-o-Y) growth in revenue to Rs 35452 crore.
The firm’s consolidated profit after tax (PAT) -- or consolidated net profit -- was at Rs 2754 crore in the March quarter, up from Rs 2637 crore in the same quarter of financial year (FY) 2023.
For the full year, the revenue grew by 15 per cent to Rs 1.39 trillion and the PAT grew by 10 per cent to Rs 11269 crore.
If the previous year gains from Swaraj Engines (SEL) and Susten (renewable energy firm) and net of the impairment from the trucks business are excluded, the PAT has risen by 25 per cent.
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M&M stocks rose 3.05 per cent to Rs 2372.85 apiece on the BSE as the company beat estimates. Bloomberg analysts’ estimates had pegged the Q4FY24 revenues at Rs 24029 crore and profit at around Rs 1815 crore.
During the fourth quarter, M&M’s auto volumes were up 14 per cent to 215,000 units and the company had open bookings of 220,000 SUVs as of May 1 which includes 50,000 units booking of the new XUV 3XO which was launched on May 15.
The XUV 3XO garnered 50,000 bookings in the first hour of opening bookings.
M&M’s SUV revenue market share was up 80 bps to 20.4 per cent and its light-commercial vehicle (less than 3.5 tonne) volume market share was at 47.5 per cent up 310 bps.
Auto revenues were up 22 per cent in Q4FY24 (Rs 20908 crore) and up 24 per cent for the full year (Rs 76156 crore).
Consolidated auto PAT was up 3-times to Rs 1345 crore in Q4 and up 2.5-times to Rs 4714 crore in FY24.
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M said, “We continue to be No.1 SUV player by revenue … In tractors, we achieved a market share of 41.6 per cent, a gain of 40 bps during FY24.”
During Q4, however, the company’s tractor market share was down 130 bps to 39.4 per cent.
Farm machinery revenues in Q4 were up 44 per cent to Rs 225 crore.
Consolidated farm revenues for Q4 was down 22 per cent, while the FY24 revenues were down 2 per cent. This is in a year when the industry has declined by 7 per cent, said Jejurikar.
However, PAT for the full year in the farm business was up 2 per cent.
Q4FY24 PAT for farm business was down 17 per cent to Rs 588 crore in tough market conditions.
Anish Shah, Managing Director & CEO, M&M said, “It has been an excellent year with most of our businesses delivering high levels of performance. Auto continued its high growth trajectory, farm gained share in a tough market and Mahindra Finance delivered on asset quality. TechM was a weak spot, the turnaround has commenced with the new organisation in place. Growth gems are performing well, with Susten and Last Mile Mobility leading the way. We also made significant progress on sustainability, diversity and our efforts on women empowerment.”
As for services, M&M Finance Q4 exit GS3 was the lowest ever at 3.4 per cent. Mahindra Lifespaces made residential pre-sales of Rs 1086 crore in Q4, Club Mahindra total income was up 14 per cent while member addition was up 12 percent. Mahindra Logistics Q4 revenues were up 14 per cent. Susten won new orders of 2Gwp in FY24. Consolidated services business revenue in Q4 was up 5 per cent to Rs 8855 crore while the PAT was down 44 per cent to Rs 821 crore.
