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M&M Q4FY23 PAT up 17.9% at Rs2,637 crore on 83% growth in automotive operating profits

May 27, 2023

By: BlinkX Research Team

M&M reported 24.8% growth in net sales revenues for the March 2023 quarter on consolidated basis at Rs32,366 crore. Revenues were lower up 5.7% on sequential basis. Automobiles vertical reported highest ever volumes at 698,000, up 50% in FY23. Farm equipment volumes were up 15% at 404,000. M&M had SUV market share of 19.6% and over 41% in tractors, the highest in last 5 years.

For the automotive business, the fourth quarter operating margins were up 190 bps at 7.3% while the open bookings of SUVs stand at 292,000 showing robust demand. For farm equipment, the EBIT margins were up 100 bps at 16.7% yoy. While M&M reported 21% growth in total vehicles sold, it reported 24% growth in total tractors sold. The quarter saw strong traction in the automotive business as well as the farm equipment business.

Financial highlights for Mar-23 compared yoy and sequentially

The operating margins improved yoy from 9.36% to 9.75% but the net margins were lower at 8.15% compared to 8.63% in year ago period. This is more due to lower exceptional gains in the current quarter. The board has declared a final dividend of Rs16.25 per share. The company has seen an improvement in the interest coverage in the quarter, while the debt equity ratio stays comfortable at about 0.43 times.