M&M Q4 Profit Surges 32% to Rs 2,038 Crore, Declares Dividend of Rs 21.10/share


by Sandip Das on 16 May 2024,  3 min read


Mahindra & Mahindra Ltd (M&M), one of the major automobile manufacturers, announced on May 16 that its standalone net profit surged by 32 percent in the March quarter to reach Rs 2,038 crore. This increase was attributed to the strong performance of the automotive segment, a favorable product mix, and benefits from operating leverage. In comparison, the company reported a standalone net profit of Rs 1,549 crore in the same period last year.

The standalone revenue from operations for the homegrown automaker increased by 11 percent to Rs 25,109 crore in Q4FY24, up from Rs 22,571 crore a year ago.

Anish Shah, Managing Director & CEO of M&M, commented, “Our automotive segment continued its high growth trajectory, while our farm segment gained market share despite challenging conditions. Additionally, Mahindra Finance maintained strong asset quality.”

The board of directors approved a dividend of Rs 21.10 per equity share with a face value of Rs 5.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector) of Mahindra & Mahindra, stated, “We maintained our position as the number one SUV player by revenue and expanded our market share in the LCVs < 3.5T category by 3.5 percent. Furthermore, we enhanced our Auto Standalone PBIT margin by 190 bps. In the tractor segment, we achieved a market share of 41.6 percent, marking a gain of 40 bps during FY24, and improved our core tractor PBIT margins by 30 bps.”

Manoj Bhat, Group Chief Financial Officer of M&M, added, “Our prudent capital allocation strategy and focus on operational efficiency resulted in record cash flows in FY24. We also repaid debt amounting to Rs 3,100 crore and achieved a Return on Equity (RoE) of 18.4 percent.”

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Mahindra witnessed a 27.2 percent increase in SUV sales compared to the same quarter last year.

The automotive business, which includes the sale of commercial vehicles and SUVs like Scorpio and Thar, contributes nearly two-thirds of the company’s total revenue.

However, India’s largest tractor-maker by sales faced challenges due to a 21.5 percent decline in tractor and farm equipment sales, attributed to below-average rainfall impacting rural demand.

M&M reported a 20 percent increase in revenue from the automotive segment, while revenue from the farm equipment segment declined by 13.1 percent, according to a stock exchange filing.

The share price of Mahindra & Mahindra was trading at Rs 2,321 per share on NS, up Rs 18.70 or 0.81 percent.

Source: moneycontrol

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