Mahindra & Mahindra Q4 PAT up 4%; FY24 profit jumps 25% to Rs 11,269 cr

New Delhi: Mahindra & Mahindra on Thursday reported a 4 per cent increase in consolidated profit after tax (PAT) to Rs 2,754 crore for the March quarter, driven by strong performance of its automotive business.

The company had posted a consolidated PAT of Rs 2,637 crore in the January-March quarter of FY23, M&M said in a regulatory filing.

Revenue increased to Rs 35,452 crore in the fourth quarter, registering a growth of 9 per cent, as compared to Rs 32,456 crore in the corresponding period a year ago, it added.

For the full year ended March 31, the company posted a consolidated net profit of Rs 11,269 crore as against Rs 9,025 crore in FY23, an increase of 25 per cent.

Revenue rose 15 per cent to Rs 1,39,078 crore in the last fiscal as compared with Rs 1,21,362 crore in FY23.

"It has been an excellent year with most of our businesses delivering a high level of performance. Auto continued its high growth trajectory, farm gained share in a tough market and Mahindra Finance delivered on asset quality," M&M Managing Director & CEO Anish Shah said.

TechM was a weak spot, the turnaround has commenced with the new organisation in place, he added.

The company's auto division reported a 22 per cent year-on-year increase in consolidated revenue in the fourth quarter at Rs 20,908 crore. FY24 revenue stood at Rs 76,156 crore, up 24 per cent as compared with FY23.

M&M said its vehicle sales in the January-March period this year stood at 2,15,280 units, up 14 per cent from 1,89,227 units in the year-ago period.

In FY24, the sales increased 18 per cent to 8,24,939 units from 6,98,456 units in FY23.

Tractor sales in the fourth quarter declined 20 per cent to 71,039 units from 89,128 units in the year-ago period.

For the full year, tractor sales dipped 7 per cent to 3,74,955 units from 4,03,981 units in FY23.

"We demonstrated stellar performance across auto & farm segments in FY24. We continue to be No. 1 SUV player by revenue and gained 3.5 per cent market share in LCVs (less than) 3.5T category," M&M Executive Director & CEO (Auto and Farm Sector) Rajesh Jejurikar said.

The farm machinery segment continued to have robust revenue growth of 32 per cent, he added.

"Our disciplined capital allocation and sharp focus on operating metrics helped generate record cash flows in FY24. We also repaid debt of Rs 3,100 crore and delivered RoE of 18.4 per cent. Through these steps, we have built a foundation to support the next phase of our growth," M&M Group CFO Manoj Bhat said.

M&M said its board has approved a dividend of Rs 21.10 per share of the face value of Rs 5 each.

The company's board also approved an investment of Rs 12,000 crore in Mahindra Electric Automobile Ltd (MEAL), a subsidiary of the company, to fund its EV journey over the next three years.

The company said its expects to generate sufficient operating cash to satisfy all its capital investment needs and are not looking to raise additional capital.

"Therefore, M&M and British International Investment Plc (BII) have mutually agreed to extend the timeframe for the final tranche of the latter's planned investment of Rs 725 crore, and will jointly assess whether additional investment is required by Dec 31, 2024," M&M said.

"BII has invested Rs 1,200 crore and Temasek has invested Rs 300 crore so far in MEAL. Temasek will be investing the balance Rs 900 crore as per the agreed timelines," it said.

The company said its board has re-appointed Anish Shah as the Managing Director and CEO of the company with effect from April 1, 2025 till March 31, 2030.

The board also approved the re-appointment of Rajesh Jejurikar as the whole-time director of the company designated as Executive Director and CEO (Auto and Farm Sector) with effect from April 1, 2025 till June 24, 2029.

Shares of the company ended 3.05 per cent up at Rs 2,372.85 apiece on the BSE.