The growth in the auto business is primarily attributed to a strong quarterly performance where the sales of SUVs went up by 18 per cent at 1,06,333 units as compared to 90,481 units sold in the same quarter last year.
Mahindra & Mahindra limited has today announced its financial earnings for Q4 FY2021 and it has been a strong quarter for the homegrown automaker, courtesy its turnaround plan. The auto major (M&M + MVML) has recorded a net profit of ₹ 163 crores recovering from a loss of ₹ 3255 crore recorded in the same quarter a year ago. The company has reported a revenue growth of 48 per cent at ₹ 13,338 crore as compared to ₹ 9005 crore in the same period a year ago. Mahindra’s EBIDTA too went up by 60 per cent at ₹ 1960 crore the last quarter of FY2021 as compared to ₹ 1227 crore recorded in the corresponding quarter last year. Mahindra’s operating margin too improved by 14.7 per cent compared to 13.6 per cent in the corresponding quarter previous year.
On standalone basis, the company has recorded a PAT of ₹ 48.44 crore in Q4 FY2021 as compared to a loss of ₹ 2502.43 crore recorded in the corresponding quarter a year ago. The company has recorded a revenue growth of 44.24 per cent at 13,643.43 crore as compared to Rs, 9458.43 crore in the same quarter last year. It’s PBIT on standalone basis went up by 92 per cent at ₹ 1485 crore in Q4 FY2021 as against ₹ 774 crore recorded in the corresponding quarter last year.
Also Read: Mahindra Thar 5-Door SUV Confirmed
Now coming to consolidated results, Mahindra’s PAT stood at ₹ 1634.85 crore as compared to a loss of ₹ 588.12 crore incurred in the same quarter a year ago. The company’s revenue in the last quarter of FY2021 stood at ₹ 21,770.81 crore which is a growth of 30.95 per cent when compared to ₹ 16,625 crore recorded in Q4 FY2020. Its PBIT on consolidated basis went up by 277 per cent at ₹ 1629 crore in Q4 FY2021 as compared to ₹ 432 crore recorded in Q4 FY2020.
Rajesh Jejurikar, Executive Director, M&M said, “Our approach of Walk-Run-Fly has delivered strong financial returns in FY21 .The strong margins and turnaround of global subsidiaries in FES along with a robust automotive demand momentum through the focused SUV strategy has set the ground for us to now accelerate to fly . New products and technologies , farm machinery opportunity , Krishe and cost management sets us up for a bold , aggressive growth trajectory .”
On a similar note, Dr. Anish Shah, Managing Director & CEO- M&M said, “Our associates deserve all the credit for an outstanding performance in a tough year. Our primary focus has been “people first”, keeping our associates and our communities safe. 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”.
The growth in the auto business is primarily attributed to a strong quarterly performance where the sales of SUVs went up by 18 per cent at 1,06,333 units as compared to 90,481 units sold in the same quarter last year. High-realisation models like the Mahindra Thar and XUV300 has added strong volumes where the company has received over 55,000 bookings for the Thar while the Mahindra XUV300 has witnessed a 90 per cent growth in bookings. Even the Bolero and Scorpio had strong sales of over 10,000 sales per month during Q4 FY2021. As far as the Tractor business is concerned, sales went up by a good 58 per cent at 93,044 units as compared to 58,817 units sold in Q4 last year.
Moreover, Mahindra is planning to make a capital expenditure (CAPEX) of ₹ 9000 crore in the auto business. The company has earmarked ₹ 6000 crore for eight new SUVs including XUV700, new Scorpio, new XUV300 and the five-door Mahindra Thar among others which will be introduced to the market by 2026. Then, ₹ 3000 crore is dedicated to the EV business as the company will be introducing a brand new Born platform which will give two new EVs by 2026 and all models from XUV700 will get and electric platform.