- Date : 30/05/2023
- Read: 3 mins
Mahindra & Mahindra reports strong Q4 results, with net profits jumping 22% and dividends up 16.25%. Read more to find out the key takeaways.
- M&M reports 22% increase in Q4 profits.
- Strong demand for tractors fuels growth.
- Dividend declared: Rs 16.25 per share.
- FY23 consolidated profit soars by 56%.
Mahindra & Mahindra (M&M), the Indian multinational automobile manufacturing corporation, has released its Q4 results, revealing a significant jump in profits. The company reported a 22% increase in net profit, reaching Rs 1,549 crore, compared to the same period last year. M&M's tractor business was a major contributor to this growth, with a strong demand for tractors in rural areas. The company also declared a dividend of Rs 16.25 per share, providing a boost to its shareholders. This article delves into the details of M&M's Q4 results, analysing the factors behind the company's success and offering insights into its future prospects.
Share price of the stock
The stock prices have increased by 33% in the last year, 2% in the last 6 months, and 8% in the last month.
Understanding the Q4 Results of M&M
- According to M&M, the standalone revenue from operations increased by 30.94% YoY, reaching Rs 22,571.37 crore, as compared to Rs 17,237.76 crore in the corresponding quarter of the year.
- The company announced a 22% YoY increase in standalone net profit for the March quarter, amounting to Rs 1,548.97 crore, as compared to Rs 1,268.55 crore in the corresponding quarter of the previous year.
- FY23 consolidated profit soared to a record high of Rs 10,282 crore, surging by 56%, propelled by successful automotive launches, steady growth in farm equipment, robust financial services performance, and value unlocking through partnerships.
- Q4 revenue surged by 31% to Rs 22,571 crore, exhibiting robust volume growth across key sectors, compared to Rs 17,238 crore in the previous fiscal's corresponding quarter.
- Operating profit, which is calculated as EBITDA, increased by 44.5% to Rs 2,797 crore in the January-March quarter of FY23, as compared to Rs 1,936 crore in Q4FY22. Additionally, the margins rose by 120 basis points to 12.4% as compared to 11.2% YoY.
- M&M has announced a dividend payout of Rs 16.25 per share, which will be disbursed to shareholders of record as of July 14, 2023, after August 4, 2023.
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Analysts View: Q4 Results of M&M
Goldman Sachs: M&M's stock has been given a "Buy" rating by a leading global brokerage, with a price target of Rs 1,530. The company's relative strength in terms of vehicular sales numbers compared to its competitors has been identified as a significant factor that could drive the growth of M&M's share price.
Also Read: Are Auto Stocks Entering Speed Limits After a Fast and Furious FY23?
Conclusion:
M&M's Q4 results show a 22% YoY increase in net profit, with the tractor business being a major contributor. The company has announced a dividend payout, but stock prices have only increased by 2% in the last 6 months. Current performance doesn’t guarantee future performance.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
