Mumbai-based Mahindra & Mahindra (M&M) on Friday logged an 18 per cent jump in consolidated profit at Rs 2,637 crore for the March quarter and highest-ever annual profit of Rs 10,282 crore in FY23, driven by robust performance across business verticals. The company had posted a profit after tax (PAT) of Rs 2,237 crore in the January-March quarter of 2021-22 fiscal year.
M&M’s revenue increased to Rs 32,366 crore for the fourth quarter of FY23, as compared to Rs 25,934 crore in the year-ago period. For the year ended March 31, 2023, the company posted a consolidated PAT of Rs 10,282 crore, up 56 per cent, from Rs 6,577 crore in FY22.
The company said the FY23 PAT is its highest-ever profit reported in a fiscal year. Revenue rose to Rs 1,21,269 crore last fiscal, as against Rs 90,171 crore in 2021-22 fiscal year, an increase of 34 per cent.
The company board has recommended a dividend of Rs 16.25 (325 per cent) per share of the face value of Rs 5 each.
M&M said the automotive business led the way last fiscal year with 62 per cent growth, driven by strong execution of launches and an improvement in supply chain related issues. Besides, Mahindra Accelo grew by 37 per cent; Mahindra Logistics, by 24 per cent; and Club Mahindra by 22 per cent.
“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,” M M Managing Director & CEO Anish Shah said.
Light commercial vehicles (LCVs), farm equipment, and electric three-wheelers continue to strengthen the company’s leadership position, he added. “We are very well positioned for the future, based on a strong presence in key industries, leadership in technology and a growth mindset, coupled with fiscal discipline,” Shah said.
The company reported highest-ever automotive segment volumes of 6.98 lakh in FY23, up 50 per cent, from 4,65,601 units in FY22.
The vertical posted revenue of Rs 16,400 crore, up 35 per cent as compared to FY22.
M&M said it was the leading player in the SUV revenue market share with fourth quarter share at 19.6 per cent. It noted that open bookings for its SUV range stood at 2.92 lakh units as on May 1, 2023, reflecting continued strong automotive demand.
The company also reported highest-ever volumes of 4.04 lakh units in the farm equipment segment in FY23. Tractor sales stood at 4,03,981 units last fiscal, up 15 per cent, from 3,50,981 units in the 2021-22 fiscal.
M&M Executive Director & CEO (Auto and Farm Sector) Rajesh Jejurikar said the company remained excited about the market momentum in both the auto and farm equipment segments and about crossing the milestone of 1.1 million vehicles in FY23.
“The response to new products has been very good with exciting new launches planned over the next 12 months. The efforts on cost management have led to consistent margin improvement,” he said.
According to M&M, Tech Mahindra revenue rose 19 per cent with focus on margin transformation. Similarly, Mahindra & Mahindra Financial Services reported highest-ever disbursements with AUM up 27 per cent and GNPA improving to 4.5 per cent.
Shares of the company closed 0.34 per cent up at Rs 1,281.85 apiece on the BSE on Friday.