Mahindra & Mahindra Limited
A technology & innovation-led, global, federation of companies, that provides a wide range of products, services & possibilities, enabling people to Rise. It is the world’s largest tractor Company by volume. The Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It also has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate.
Business Portfolio
- Automotive Sector
- Tractor
- Farm Machinery
- Finance
- Real Estate
- Agriculture
- Digital
- Renewables
- Steel
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
- Employee Trust
- Non Promoter-Non Public
Financial Summary
| Particulars | March 2023 | March 2022 | March 2021 |
| Sales | 1,21,269 | 90,171 | 74,278 |
| Sales Growth % | 34.49% | 21.40% | -1.46% |
| Operating Profit | 20,285 | 14,683 | 11,487 |
| OPM % | 17% | 16% | 15% |
| Profit after tax | 11,374 | 7,253 | 1,512 |
| EPS in Rs | 82.68 | 52.91 | 14.58 |
Synopsis of Financials
- Standalone PAT increased by 67% and consolidated PAT increased by 6% for the quarter.
- ROE is at 20% and EPS growth is at 18% for the first half of the year.
- Mahindra Finance performed well in terms of asset quality, with significant improvement and strong progress in digital transformation.
Final Outlook
Due in large part to higher-than-expected average selling prices, M&M’s Q4 FY23 revenue above both our and the consensus projection. However, because of a larger mix of cars and the impact of farm machinery in the Farm Equipment Sector, the EBITDA margin, at 12.40 percent, fell short of our projection of 12.80 percent. Although material prices have decreased and should support profits, management pointed out that the lack of semiconductors is still having an impact on volumes, which are now at about 3000 units per month.
Given the growing preference of customers for SUVs, the capacity ramp-up to meet a solid order book, the increases in market share in the tractor industry, and the positive response to the EV portfolio (XUV4OO), M&M stands to gain. Additionally, margins would improve from benign RM, operating leverage, and the end of volume of the entry-level priced product.
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