M&M Q4 net jumps fivefold, UV volumes hit record

Mahindra & Mahindra Ltd. (M&M) on May 28 reported fourth-quarter standalone net profit jumped fivefold to ₹1,292 crore, from ₹245 crore in the year-earlier period, helped by record sales volume of utility vehicles (UVs).

Standalone revenue grew 28% to ₹17,124 crore.

For FY22, standalone net profit surged fivefold to ₹4,935 crore, while revenue rose 29% to ₹57,446 crore, the UV and tractor maker said in a press release.

During the three months ended March, M&M sold a total of 1,52,204 vehicles, a 43% increase from the year-earlier quarter. An improvement in the supply of semiconductors resulted in lifting quarterly UV sales volume to the highest-ever level, the company said.

“Our performance in Q4 and FY22 underscores the resilience of our business model,” said MD & CEO Anish Shah. “Despite significant challenges due to various factors like COVID, commodity prices, semiconductor shortages and the Ukraine conflict, we have delivered strong results at the consolidated level. All of our group companies are well positioned to capitalise on growth opportunities,” he added.

Consolidated profit grew 48% in the fourth quarter to ₹2,237 crore, while revenue rose 21% to ₹25,934 crore. Profit almost doubled in the full year at a consolidated level to ₹6,577 crore, from ₹3,348 crore.

Sales volume for the full year rose 31% to 4,55,570 units. However, tractor sales declined 23% in the fourth quarter to 72,058 units, and remained almost flat in FY22 at 3,50,981 units.

“With over 1,70,000 bookings, the demand for the automotive product portfolio remains strong,” said Rajesh Jejurikar, Executive Director.

“Farm equipment sector delivered second-highest full-year profit before interest and tax (PBIT) despite market slowdown and steep commodity inflation.” he added.

“Our focus on capital allocation and improved financial metrics continues to deliver results,” said Group CFO Manoj Bhat, adding, “We continue on our journey towards 18% Return on Equity (RoE)”.

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