M&M posts profit of Rs 163 crore in Q4, dividend at Rs 8.75 per share
May 28, 2021
Mumbai (Maharashtra) [India], May 28 : Mahindra & Mahindra on Friday reported a consolidated profit of Rs 163 crore for the January to March quarter as compared to a loss of Rs 3,255 crore in the year-ago quarter.
The gain in Q4 FY21 was impacted by one-time loss of Rs 840 crore. M&M's revenue surged 48 per cent to Rs 13,338 crore from Rs 9,005 crore in same period of previous fiscal.
Earnings before interest, tax, depreciation and ammortisation (EBITDA) came at Rs 1,960 crore while EBITDA margin was 14.7 per cent for Q4 FY21 as compared to 13.6 per cent in Q4 FY20.
Automotive business revenue during the quarter grew 42.7 per cent to Rs 7,858 crore as against Rs 5,506 crore.
The company said overall demand remained robust for automotive products but global shortage of semi-conductors impacted production and sales.
M&M said the automotive division continued to focus on cost optimisation and reduced fixed expenses by over Rs 900 crore over the last two years, hence keeping margin resilience even under challenging times.
Meanwhile, the farm equipment segment also reported strong performance despite supply chain and commodity challenges. Tractor volumes were up 58 per cent and revenue up 60 per cent.
"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," said Executive Director Rajesh Jejurikar.
"New products and technologies, farm machinery opportunity and cost management sets us up for a bold, aggressive growth trajectory."
The company has also announced the highest-ever dividend of Rs 8.75 per share for FY21 to commemorate the 75th year of the company.
