M&M Q4 profits get a boost from strong PV bookings

Mahindra & Mahindra clocked nearly 28 percent increase in Q4FY22 revenue at Rs 17,124 crore compared to Rs 13,356 crore in Q4FY21. The company’s standalone profit after exceptional income came in 48 percent higher at Rs 2,237 crore in Q4FY22 compared to Rs 1,513 crore in Q4FY21.

Outlining the company’s performance, Anish Shah, Managing Director & CEO, M&M said, “Despite significant challenges due to various factors like Covid-19, commodity prices, semiconductor shortages and the Ukraine conflict, we have delivered strong results at the consolidated level. All of our group companies are well positioned to capitalise on growth opportunities.”

For the full year, M&M clocked four-fold increase in its profit. FY22 Standalone PAT after exceptional income was at Rs 4,935 crore compared to Rs 984 crore in FY21 driven by the auto business that delivered highest ever quarterly UV Volumes in Q4 with 42% growth YoY. The 40 percent growth in farm equipment sector (FES) Tractors Market Share in FY22 is flat compared to last fiscal and put pressure on the margins.

However, Rajesh Jejurikar, Executive Director, M&M added that “With 170,000+ bookings, the demand for the automotive product portfolio remains strong. FES delivered second highest full year PBIT despite market slowdown and steep commodity inflation. Given the recent fiscal and monetary measures by Government of India and RBI, we foresee the cost pressures in the economy to ease out.”

With respect to bookings, the XUV7OO leading the way with 78000 plus open bookings. The improvement in semiconductor supplies helped M&M clock highest ever quarterly UV volumes. The company has garnered leadership position in LCV <3.5T for the eighth consecutive year and clocked highest ever quarterly sales of Treo in the electric three-wheeler segment.