Results for the fourth quarter of Mahindra & Mahindra: Mahindra & Mahindra (M&M) reported a high year-on-year performance on Friday, but the sequential performance was nearly flat. For the quarter ended March 31, 2023, M&M’s standalone profit after tax (PAT) climbed by 22% to Rs 1,549 crore. It was Rs 1,269 crore in the previous fiscal quarter and Rs 1,528 crore in the December quarter. The profit number was substantially lower than the Rs 1,756 crore predicted by CNBC-TV18.
Consolidated, the company’s FY23 profit increased 56 percent to an all-time high of Rs 10,282 crore, driven by successful mega establishes in automotive, consistent growth in farm equipment, strong operating performance in financial services, and value unlocking through monetization/partnerships.
Revenue increased by 31% to Rs 22,571 crore in the current quarter, with strong volume progress across all main divisions. In the previous fiscal quarter, the figure was Rs 17,238 crore.
Operating profit, calculated as earnings before interest, taxes, depreciation, and amortization (EBITDA), increased 44.5 percent year on year to Rs 2,797 crore from Rs 1,936 crore in Q4FY22, while margins grew by 120 basis points to 12.4 percent from 11.2 percent.
According to a filing, operational profits increased dramatically as a consequence of volume growth, prompt price measures, lower commodity inflation, and strict management over fixed costs.
The Board has suggested a dividend of Rs 16.25 per Ordinary (Equity) Share having a face value of Rs 5 each for fiscal FY23. The dividend, as suggested by the board and as proclaimed at the AGM, will be paid to shareholders after August 4, 2023.
How to trade M&M stock?
The counter is rated ‘buy’ by LKP Securities, with an intended price of Rs 1,500. Following the announcement of the fourth-quarter data, Ashwin Patil, Research Analyst at LKP Securities, commented, “We will definitely have a look at our estimates.”
“The results were very consistent with predictions, with no major shocks on either the good or negative side. As a result, the stock is likewise behaving rather flatly.
The releases that the corporation has been conducting in the Bolero and XUV families have a somewhat greater margin and higher realizations. So it may provide some support, but we are not anticipating too many margin levers from current levels. Because the input cost basket is also tightening, there isn’t much space for margin development,” Patil explained.
Dr. Anish Shah, Managing Director & CEO of M&M, commented on the company’s Q4FY23 results, saying, “It has been a blockbuster year for the group.” With record-breaking launches, Auto reclaimed first place in the SUV revenue market share. LCVs, farm equipment, and electric three-wheelers help us maintain our lead.”