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Mahindra & Mahindra Ltd (M&M) on Friday posted a consolidated profit-after-tax of ₹163 crore for the fourth quarter ended March 31 compared to net loss of ₹3,255 crore in the same period last year.
Net revenue from operations increased 48.1 per cent year-on-year (YoY) to ₹13,338.15 crore during the quarter. The results include the combined earnings of M&M and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.
Anish Shah, Managing Director & CEO, M&M Ltd, said, “Our associates deserve all the credit for outstanding performance in a tough year. We have delivered our promise on capital allocation actions and have seen very positive results. We are now focused on growth … across our core businesses, growth gems and digital platforms”.
The company reported an exceptional loss (net) of ₹839.89 crore in Q4 March 2021, representing impairment provisions for certain long-term assets and other exposures.
Farm equipment sector revenue increased 60 per cent YoY to ₹4,975.5 crore in Q4FY21, with the highest-ever fourth-quarter domestic volumes. Auto sector revenue was up 43 per cent YoY to ₹7,858.14 crore.
Strong margins
Rajesh Jejurikar, Executive Director, M&M Ltd, said, “The strong margins and turnaround of global subsidiaries in farm equipment sector along with a robust automotive demand momentum through the focused SUV strategy has set the ground for us to now accelerate.”
Operating margin improved to 14.7 per cent compared to 13.6 per cent in the corresponding quarter previous year despite a significant strengthening in commodity prices.
Manoj Bhat, Chief Financial Officer, M&M Ltd, said, “ Our journey towards our goals of streamlining capital allocation and delivering superior returns has begun well. We are delighted by the robust operating cash flow in a year which saw the impact of the pandemic as well as multiple supply-side challenges.”
Announces dividend
The company also announced a dividend of 175 per cent of face value (₹8.75 per share) for FY21, which is 3.7 times FY20 dividend. “This is the highest-ever in the history of M&M, in light of the strong financial performance and to commemorate the 75th year of the company,” said a press statement.
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