M&M Q4 Results: Profit Rises Meeting Estimates, Revenue Up 28% As Demand Improves
M&M's fourth-quarter profit rose as demand for its passenger vehicles continue to improve.
Mahindra & Mahindra Ltd.'s fourth-quarter profit rose as demand for its passenger vehicles continue to improve.
Net profit of the sport utility vehicle maker jumped over a year earlier to Rs 1,291 crore in the three months ended March from Rs 245 crore in the year-ago period, according to its exchange filing. That compares with the Rs 1,211-crore consensus estimate of analysts tracked by Bloomberg.
Profit before exceptional items rose 17% to Rs 1,167 crore from Rs 998-crore in the year-ago period.
M&M Q4 FY22: Key Highlights (YoY)
Revenue rose 28% to Rs 17,124 crore, compared with the Rs 16,593-crore estimate.
Operating profit fell 1% to Rs 1,945 crore, compared with the Rs 1,909.68 crore estimate.
Operating margin contracted to 11.4% from 14.5%.
The automaker's passenger vehicle sales rose 42.6% year-on-year to 75,230 units in the fourth quarter. While its domestic tractor sales declined 22.4%, to 72,882 units, respectively.
The company saw the highest-ever quarterly volumes of utility vehicles as the chip supply improved during the quarter.
"Our performance in Q4 and FY22 underscores the resilience of our business model," Anish Shah, Managing Director and CEO, M&M Ltd. said adding that despite significant challenges due to various factors like Covid, Commodity prices, semiconductor shortages, and the Ukraine conflict, the company delivered strong results at the consolidated level.
The company said with over 170,000 bookings, the demand for the automotive product portfolio remains strong.