Mahindra & Mahindra (M&M) and Mahindra Vehicular Manufacturing (MVL) posted a combined net profit of Rs 163 crore in Q4FY2021 compared to a loss of Rs 3,255 crore in Q4FY2020. The combined revenues in Q4 is up 48 percent year-on-year to Rs 13,338 crore (Q4 FY2020 revenue: Rs 9,005 crore) on the back of strong domestic performance of the auto and farm divisions.
The farm equipment sector revenue is up 60 percent in Q4 FY2021 year-on-year, the highest ever fourth quarter domestic volumes, PBIT and PBIT margins. The auto sector revenue is up 43 percent in Q4 FY2021 with a strong booking pipeline for its key products. However, supply constraints have impacted production and sales. The performance was also boosted by reduction in Exceptional Items (EI) loss in Q4FY2021 to Rs 840 crore from Rs 3,578 crore YoY.
Consolidated operating profit is up 36 percent at Rs 4,610 crore for the full year, FY2021. Operating cash generated for FY2021 is up 119 percent at Rs 10,022 crore driven primarily by improved profitability and robust working capital management. Speaking on the Q4 performance, Anish Shah, MD and CEO, Mahindra & Mahindra 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, Mahindra & Mahindra added that, “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.”
The M&M stock closed trading on May 28, up 2 percent at Rs 846 per share level and has been amongst the top gainers in intra-day trade.
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