Mahindra & Mahindra Q4 results out, Profit rises 32%, beating estimates

Mahindra & Mahindra (M&M) announced its Q4FY24 earnings today, revealing a substantial 32% increase in standalone profit, reaching Rs. 2,038 crore compared to Rs. 1,549 crore in the same period last fiscal year. Revenue from operations totaled Rs. 25,109 crore, with EBITDA rising to Rs. 3,119 crore, a 12% surge from Q4FY23’s Rs. 2,789 crore. Ebitda margin surged to 13.5% from 12.4%

Financial Highlights

Dividend Proposal

In the filing today, the company proposed a dividend of Rs. 21.10 per equity share with a face value of Rs. 5 each, translating to a dividend payout ratio of 422%.

Market Dominance in Q1 2024

In the Q12024, M&M capitalized on its market dominance to secure its position as India’s leading SUV manufacturer by revenue, boasting a 20.4% share. Additionally, the company maintained a commanding presence in the light commercial vehicle segment, capturing a substantial 49% market share. 

Success in Key Sectors

Notably, M&M emerged as a major player in the agricultural sector, selling two out of every five tractors in the country. Furthermore, the company achieved significant success in the electric vehicle market, claiming the top spot as India’s largest electric three-wheeler manufacturer, commanding a notable market share of 58.7%. 

Investment in EV Subsidiary

M&M’s board has given the green light for a Rs 12,000 crore investment into its electric vehicles (EV) subsidiary, MEAL, spread out over the coming three years. Moreover, according to the company, BII has injected Rs. 1,200 crore, while Temasek has contributed Rs. 300 crore to MEAL up to this point. Temasek is committed to investing the remaining Rs. 900 crore as per the agreed-upon timelines.

Conclusion: Mahindra & Mahindra (M&M) reported a 32% profit increase in Q4FY24, proposing a notable dividend. Dominating India’s SUV and light commercial vehicle segments, M&M excels in agriculture and electric vehicles, securing substantial market shares. With a Rs 12,000 crore investment plan for its EV subsidiary, M&M’s future outlook appears promising for sustained growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.