According to M&M, the combined earnings of itself and MVML provide a comprehensive view of the company.
M&M and MVML’s combined revenues in the quarter rose 48 per cent on-year to Rs 13,338 crore, reflecting the strong demand environment for tractors and automotives.
The company’s board also approved a final dividend worth Rs 8.75 per share for the financial year ended March 2021.
Overall, the demand remained robust for the company’s products in the March quarter. However, the global shortage of semiconductors impacted the production and sales for the quarter, Mahindra & Mahindra said in a statement.
The farm equipment business of the company also did well as profit before interest and tax of the division grew 100 per cent in the March quarter to Rs 1,095 crore. The PBIT margin of the segment also saw a handsome improvement from 17.6 per cent in the year-ago quarter to 22 per cent in the reported one.
“We are now focused on growth…across our core businesses, growth gems and digital platforms,” said Dr. Anish Shah, managing director and chief executive officer of M&M.
Overall, the operating performance of the company in the quarter was strong as combined operating profit of M&M and MVML rose 60 per cent on-year to Rs 1,960 crore. The operating margin of the combined entity improved to 14.7 per cent from 13.6 per cent despite the rise in commodity prices.
“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.
M&M’s critical efforts to realign its capital allocation strategy also showed signs of bearing fruits as the exceptional loss reported in the quarter by the company fell to Rs 840 crore from Rs 3,578 crore a year ago.
“Our journey towards our goals of streamlining capital allocation and delivering superior returns has begun well,” said chief financial officer Manoj Bhat.
At 2.40 p.m., shares of M&M were trading 1.1 per cent higher at Rs 837.7 on the National Stock Exchange.
