Mahindra and Mahindra Q1 Results - profit after tax jumps 418%

Indian multinational automotive manufacturing company, Mahindra and Mahindra (M&M), declared its financial results for Q1FY23 on 5th August 2022. 

The company declared a consolidated profit after tax (PAT) after exceptional items at Rs. 2,196 crores, jumping 418% from Rs. 424 cores last year. The revenue from operations was published at Rs. 28,412 crores, up 48% Y-o-Y (year on year) from Rs. 19,172 crores. A remarkable rise in volume across segments is viewed as the reason for higher profits and revenue. 

The total vehicle units sold by M&M stood at 1,49,803, up 78% Y-o-Y from 85,858, while total tractor units dispatched came in at 1,17,413, rising 18% from 99,127 last year. In line with the premiumisation demand that the auto industry is witnessing in recent times, M&M saw its highest ever quarterly SUV sales in Q1 FY23 at 74.5k.  

Meanwhile, the farm equipment segment for M&M recorded its second highest Q1 PBIT at Rs. 1,074 crores. The segment also witnessed its highest ever domestic quarterly volumes (112.3k tractors) and exports (5.1k tractors) in Q1FY23.

The basic EPS was recorded at 19.74. The script traded at ~Rs. 1250.50, experiencing a ~1% decline during the trading hours. 

Segment wise revenue of M&M Results

Automobile

• The revenue for this segment was published at Rs. 703.52 crores, up 586.29% Y-o-Y or ~7X from Rs. 102.51 crores
• The open booking at 165k+ reflected strong automotive demand 
• The highest ever quarterly sales of Treo in the EV 3W segment was recorded for this quarter
• Auto delivered highest ever quarterly SUV

Farm equipment

• This segment recorded the second highest ever Q1 PBIT at Rs. 1,074 crores
• A total of 6 awards were won by M&M at ITOTY Awards’22 under different categories, including ‘Indian Tractor of the Year’
• Tractors' market share for Q1 FY23 came in at 42.7%, up ticking 0.9% Y-o-Y
• The highest ever domestic quarterly volumes (112.3k tractors) and exports (5.1k tractors) was recorded for Q1FY23

Others

• Revenue from other segments came in at Rs. 41.84 crores, down –% Y-o-Y

Hits

• Consolidated PAT came in at Rs. 2,196 crores, rising 418% Y-o-Y
• Revenue from operations was up 48%, coming in at Rs. 28,412 crores
• Total vehicles and tractors sold rose 78% and 18%, respectively
• Strong booking trend observed across segments
• Automobile segment revenue grew ~7X; Farm equipment segment declared highest ever Q1 PBIT

From the management

Commenting on Q1 FY23 performance …

Dr. Anish Shah, Managing Director & CEO, M&M Ltd, said, “Our performance this quarter is a reflection of the focus on delivering on our commitments to our stakeholders and customers. We saw good momentum across all our group companies, led by the strong results of the Auto and Farm sector.”

Mr. Rajesh Jejurikar, Executive Director, M&M Ltd, said, “We recorded our highest quarterly revenue for Auto and Farm segments and delivered a robust operational and financial performance in Q1 FY23. M&M

continues to maintain its no.1 position in SUV Revenue Market Share, while FES strengthened its leadership position with a 42.7% tractor market share. With 273k+ bookings, the demand for the automotive product portfolio remains strong. Following the blockbuster launch of Scorpio-N, we are excited about the next phase with the unveiling of our Born Electric Vision later this month.”

Mr. Manoj Bhat, Group Chief Financial Officer, M&M Ltd, said, “We were able to deliver robust results despite the volatility, which is a testament to our business model. Our progress on our goals on RoE and growth are on track.”

Other things to know about M&M 

• M&M continues to be No.1 in SUV Revenue Market Share (17.1%)
• The company successfully launched  all new Scorpio-N – 25k, where 100k bookings within 30 minutes were recorded
• British International Investment (BII) to invest up to $250 mn in a new EV Co to be set up at a valuation of up to $ 9.1 bn 
• M&M continues on the path of last-mile mobility. It remains the No 1 electric 3W company with a market share of 75.4% in Q1 FY23
• Mahindra and Mahindra is one of the leading 2,3 wheeler, CVs, and tractor companies in the country, with a global presence in several companies. It also has a presence in financial services, hospitality, IT, consultancy, retail, logistics and more. 
• M&M's market capitalization stood at ~Rs. 1,55,300 crores
• Its RoCE (return on capital employed) and RoA (return on assets) came in at  11.3% and 14.2%, respectively