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  1. Home
  2. Reports M&M Quarterly Result Update Q4FY22
3161.00 -67.70 (-2.10%)

M&M Quarterly Result Update Q4FY22
31-05-2022

Mahindra & Mahindra | Market Cap 1,24,000 Cr

CMP: 1030| Auto business P/E 17x


Results: 

We recommend to track standalone Financials for Mahindra’s performance and operating profit instead of net profit. Line items below operating profit may include other income (dividends from subsidiaries) and exceptional items (investment cost incurred in past gets revalued hiding actual performance). Also consolidated financials have debt from subsidiaries which doesn’t apply to parent company.

Click here for 10-year X-ray    

 

Key highlights:

  • M&M saw increase in volumes by 7% QoQ and 5% increase in net realisations QoQ due to higher automotive mix
  • Automotive divisionreported 26% sales growth QoQ (29% volume growth, 2% decline in ASP)
  • Tractors businessreported a decline of 17% QoQ. (22% lower volumes and 6% higher ASP) Price hikes taken and better product mix have push to ASP which somewhat moderated the impact of volume decline.
  • In the tractor segment, the company took price hike of 2-2.5% in April 2022.
  • The company highlighted that CAFÉ norm regulation will result in cost price Rs8k-12k per vehicle, which they have already taken during the quarter
  • The company has received total bookings of 170,000 units out of which 78,000+ units booking is for XUV700 (9-1000 bookings every month).
  • The company announced Final Dividend for FY22 of Rs. 11.55 per share
     

Management Outlook: The Management is optimistic on improving margins and supply chain side constraints with cooling off in commodity prices due to government measures and de-risking of chip supply situation.

The company expects domestic tractor industry volumes to grow by mid-single digit on a yoy basis in FY2023E. They plan to achieve 19% EBIT margins over FY2023-24.

The company expects to launch the new Scorpio in June 2022 and will be unveiling the Born Electric SUV on August 15, 2022. The company will be deploying capital for capex (including investments) of Rs170 bn over FY2022-24E

 

Disclosure: MoneyWorks4me's employees may have exposure in the securities mentioned in the above report. For detailed disclosure click here.
3161.00 -67.70 (-2.10%)
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