M&M Q4 net profit up at ₹163 crore
The board has announced a dividend of 175% of face value (₹8.75 per share) for FY21, which is 3.7x of F20 dividend.
Mahindra & Mahindra Ltd (M&M) along with its wholly owned subsidiary Mahindra Vehicle Manufacturers Ltd (MVML) reported net profit rose to ₹163 crore for the fourth quarter ended March 31, 2021 as against net loss of ₹3,255 crore in the year ago period.
Adjusted net profit for the quarter stood at ₹1,002 crore as the company made an exceptional loss of ₹839 crore due to impairment provision for certain long term assets and other exposures.
During the quarter M&M + MVML reported revenue of ₹13,338 crore as compared to ₹9,005 crore in the same period last year, up 48%.
For the financial year M&M + MVML reported net profit of ₹923 crore as compared to ₹740 crore in the previous year, up 25%. Revenue was down 1% to ₹44,574 crore.
The Mahindra Group reported consolidated fourth quarter net profit of ₹1,513 crore as compared to net loss of ₹464 crore. Revenue increased 32% to ₹21,456 crore. For the financial year net profit increased 40% to ₹3347 crore over the previous year. Revenue was down 1% at ₹74,278 crore.
The board has announced a dividend of 175% of face value (₹8.75 per share) for FY21, which is 3.7x of F20 dividend. “This is the highest ever in the history of M&M, in light of the strong financial performance and to commemorate the 75th year of the company,” M&M said in a filing.
Anish Shah, managing director & CEO, M&M Ltd, said, “We have delivered our promise on capital allocation actions and have seen very positive results. We are now focused on growth across our core businesses, growth gems and digital platforms.”
Rajesh Jejurikar, executive director, M&M Ltd, said, “Our approach of Walk-Run-Fly has delivered strong financial returns in FY21. The strong margins and turnaround of global subsidiaries in Farm Equipment Sector along with a robust automotive demand momentum through the focused SUV strategy has set the ground for us to now accelerate to fly.”
Manoj Bhat, Chief Financial Officer, M&M Ltd, said, “Our journey towards our goals of streamlining capital allocation and delivering superior returns has begun well.”
Commenting on the result Mitul Shah, Head of Research, Reliance Securities said, “Whilst M&M is expected to face some volume pressure owing to competitive environment in domestic utility vehicle space, we believe new products and stronger presence in rural markets would drive its overall volume and profitability.”
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