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Mahindra & Mahindra Q4 Results: Profit Rises But Misses Estimates On One-Time Loss

The company's net profit rose 22% to Rs 1,549 crore in the quarter ended March, according to its exchange filing.

<div class="paragraphs"><p>Newly launched M&amp;M's electric SUV XUV400. (Source: Company website)</p></div>
Newly launched M&M's electric SUV XUV400. (Source: Company website)

Mahindra & Mahindra Ltd.'s fourth-quarter profit rose on higher sales and improvement in the product mix.

The company's net profit rose 22% over a year earlier to Rs 1,549 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 1,663 crore consensus forecast of analysts tracked by Bloomberg.

An exceptional loss of Rs 512 crore, representing impairment for certain long-term investments, dragged down the overall profit in the quarter.

M&M Q4 FY23 Highlights (Year-on-Year)

  • Revenue rose 31% to Rs 22,571 crore, compared with the Rs 21,897.5 crore forecast.

  • Ebitda grew 44% to Rs 2,797 crore, against an estimate of Rs 2,797 crore.

  • Ebitda margin stood at 12.4% versus 11.2% last year. The estimate was 12.8%.

The consolidated net profit rose 18% to Rs 2,637 crore, while revenue grew 25% to Rs 32,366 crore.

The company's automotive sales rose 21.4% year-on-year to 1.89 lakh units and the tractor sales grew 23.1% to 89,731 units in the quarter.

The operational profits improved significantly, as a result of volume growth, timely pricing actions, easing commodity inflation and control over fixed costs, M&M said in a release.

The Mahindra Group company clocked the highest-ever volumes in both automotive and farm equipment businesses in the year ended March.

For the fiscal year ended March, the automaker registered 34% growth in the consolidated revenue to Rs 1.21 lakh crore and a jump of 56% in net profit to Rs 10,282 crore.

The pending bookings stood at 292,000 units as of May 1, according to the company.

Shares of Mahindra & Mahindra were trading almost unchanged after the results compared with a near 1% rise in the benchmark Nifty 50 as of 2.20 p.m. on Friday.