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With the auto business recording its highest-ever quarterly revenues and volumes and helped further by an exceptional item, sports utility vehicle specialist Mahindra & Mahindra (M&M) more than doubled its consolidated net profit for the quarter ended March 2022 compared to the same quarter last year.
The Mumbai-based maker of Scorpio and Thar recorded ₹2,608 crore in consolidated net profit during the reporting quarter as against ₹1,150 crore reported during the same quarter in 2021. M&M claimed to be sitting on open bookings of more than 1,70,000 units, including 78,000 of the XUV700 — the company’s flagship product.
The company has declared a final dividend of ₹11.55 per share for FY22, representing 231 per cent of face value.
An exceptional item of ₹293.73 crore for the quarter for the reporting quarter represents the impairment of non-current assets, impairment reversal (net) of certain investments using the equity method, and gain on sale/change in ownership interest in certain associates and joint ventures.
Rajesh Jejurikar, Executive Director, M&M, said, “We recorded our highest revenue for auto and farm equipment segment in FY22. M&M became number one in SUV revenue market share in Q4 and H2 FY22, while FES gained 180 basis points market share in FY22. FES delivered the second highest full-year PBIT despite market slowdown and steep commodity inflation. Given the recent fiscal and monetary measures by the government of India and RBI, we foresee the cost pressures in the economy to ease out.”
Spike in volumes
Automotive volumes grew 43 per cent to 1,52,204 units during the March quarter as compared to 1,06,333 units sold during March 2021. Automotive volumes improved on the back on improved availability of semiconductors.
M&M claimed leadership position in the less than 3.5 tonne truck segment while also claiming to clock its highest-ever quarterly sale of the Treo electric three-wheeler. Tractor volumes dropped to 72,058 units, a fall of 23 per cent 93,044 units.
Consolidated total income during the reporting March quarter stood at ₹26,215 crore, a growth of 20 per cent as against ₹21,771 crore posted in the same quarter in March 2021. EBITDA margin before exceptional items fell to 11.4 per cent during Q4 FY22 compared to 14.6 per cent recorded during Q4 FY21.
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