M&M Q4FY23 PAT up 17.9% at Rs2,637 crore on 83% growth in automotive operating profits
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
| Mahindra & Mahindra | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 32,366 | ₹ 25,934 | 24.80% | ₹ 30,620 | 5.70% |
| Operating Profit (Rs cr) | ₹ 3,157 | ₹ 2,428 | 29.99% | ₹ 3,046 | 3.62% |
| Net Profit (Rs cr) | ₹ 2,637 | ₹ 2,237 | 17.85% | ₹ 2,677 | -1.49% |
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| Diluted EPS (Rs) | ₹ 23.58 | ₹ 20.00 |
| ₹ 23.94 |
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| OPM | 9.75% | 9.36% |
| 9.95% |
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| Net Margins | 8.15% | 8.63% |
| 8.74% |
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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.