Mahindra & Mahindra revenue jumps 28% to Rs 17,124 crore but dip in tractor sales hurts margin

M&M’s standalone profit after tax (before exceptional items) for the quarter came in at Rs 1,167 crore, 8 percent higher than Street estimates of Rs 1,074 crore. PAT (after EI) was recorded at Rs 1,292 crore, which is a whopping 427 percent growth on year.

The automaker's earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter under review was at Rs 1,945.54 crore, marginally down from Rs 1,955.18 crore for the same period last fiscal. EBITDA was in line with analysts expectations.

M&M’s total vehicle sales stood at 1,52,204, up from 106,333 in the fourth quarter of 2020-2021, while tractor sales dipped to 72,058 from 93,044 in the corresponding quarter of the last financial year.

Analysts polled by CNBC-TV18 had predicted a 44 percent on-year jump in automotive volumes to 1,000 units and tractor volumes to take a dent of 22 percent to 72,882 units.

The automotive segment registered the highest-ever quarterly revenue at Rs 12,072 crore as a result of improved semiconductor supplies in the January to March 2022 period, the company said. Farm business, meanwhile, delivered highest ever volumes in FY22 (including Gromax and exports), it added.

M&M’s Executive Director Rajesh Jejurikar said, "We recorded our highest revenue for auto and farm segment in FY22. M&M became No.1 in SUV revenue market share in Q4 and H2 FY22, while FES gained 180 basis points market share in FY22. With 170k+ bookings, the demand for the automotive product portfolio remains strong.”

Given the recent fiscal and monetary measures by the government, the company foresees cost pressures in the economy to ease out, according to the company statement.