Mahindra & Mahindra Q4 Profits Surge by 18%, Full-Year 2023 Profits Soar by 56% to Rs 10,282 Crore
- ByStartupStory | May 27, 2023
Mahindra & Mahindra, based in Mumbai, has announced a notable 18% increase in consolidated profit for the March quarter, amounting to Rs 2,637 crore. The company also experienced a substantial 56% rise in profit for FY23, reaching Rs 10,282 crore, driven by strong performance across its various business verticals. In the corresponding period of FY2021-22, M&M reported a profit after tax (PAT) of Rs 2,237 crore, and for FY22, it reported a consolidated PAT of Rs 6,577 crore.
Mahindra & Mahindra (M&M) has declared its FY23 PAT as the company’s highest-ever profit recorded in a fiscal year. The fourth-quarter revenue for FY23 witnessed a significant increase, reaching Rs 32,366 crore compared to Rs 25,934 crore in the same period last year. Moreover, the revenue for FY23 climbed to Rs 1,21,269 crore, marking a 34% growth from Rs 90,171 crore in the previous fiscal year. M&M has also revised its capital expenditure (capex) outlay for the FY22-FY24 cycle to Rs 15,900 crore, surpassing the earlier figure of Rs 15,075 crore.
“Secular revenue growth across the group along with strong operating leverage has helped us cross the milestone of Rs 10,000 crore in profits. Our sharp focus on capital allocation, monetisation and innovative partnerships continues to unlock value,” said M&M Group CFO Manoj Bhat.
Mahindra & Mahindra (M&M) has credited its automotive business as the primary driver behind its robust fiscal performance, accounting for a remarkable 62% growth. Mahindra Accelo experienced a substantial 37% growth, Mahindra Logistics recorded a notable 24% growth, and Club Mahindra witnessed a commendable 22% growth.
“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,” said Managing Director and CEO Anish Shah.
Light commercial vehicles, farm equipment, and electric three-wheelers continue to strengthen the company’s leadership position, he said. “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,” said Shah.
Mahindra & Mahindra (M&M) proudly announced its highest-ever automotive segment volume of 6.98 lakh units in FY23, marking a remarkable 50% increase compared to the previous fiscal year’s figure of 4,65,601 units. This outstanding performance was accompanied by a revenue growth of 35% in the vertical, reaching Rs 16,400 crore. M&M also solidified its position as a market leader in SUVs, boasting a fourth-quarter revenue market share of 19.6%.
Mahindra & Mahindra (M&M) continues to experience robust automotive demand, with open bookings for its SUV range reaching an impressive 2.92 lakh units as of May 1, 2023. The company also achieved its highest-ever volume in the farm equipment segment, reporting 4.04 lakh units sold in FY23. Tractor sales saw a notable 15% increase, reaching 4,03,981 units compared to 3,50,981 units in FY22. Rajesh Jejurikar, the Executive Director and CEO (Auto and Farm Sector) of M&M, expressed enthusiasm for the market momentum in both segments and the milestone achievement of surpassing 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,” Jejurikar noted.
Follow Startup Story
Related Posts
