Mahindra & Mahindra has also announced the highest dividend of Rs 8.75 per share for FY 2021 to mark the completion of the company’s 75th year.
Mahindra & Mahindra (M&M) on Friday reported Consolidated Profit of Rs 163 crore for the March quarter (Q4FY21) of 2020-21, which was affected by a lump sum loss of Rs 840 crore. In comparison, Mahindra & Mahindra posted a loss of Rs 3,255 crore in the year-ago quarter.
Mahindra & Mahindra has also announced the highest ever dividend of Rs 8.75 per share for FY 2021 to mark the 75th year of the company. With this, Mahindra & Mahindra’s revenue has grown by 48 per cent year-on-year to Rs 13,338 crore as against Rs 9,005 crore in the same quarter last year. Analysts at MK were expecting M&M to report revenue of Rs 13,001.5 crore in the fourth quarter, while net profit was estimated at Rs 1,012.8 crore.
The company reported income before interest, tax, depreciation and amortization (Ebitda) at 1,960 crore. Despite a significant uptick in commodity prices, the Ebitda margin for the quarter came in at 14.7 percent as against 13.6 percent reported in Q4FY20.
Automotive products demand is strong
Executive Director Rajesh Jejurikar said, “The strong margins and turnaround of global subsidiaries at FES, as well as a strong automotive demand through focused SUV strategy have set the ground for us to accelerate now.” The company said that overall demand for the company’s automotive products was strong in Q4FY21. However, the global shortage of semiconductor affected production and sales for the quarter.
Increased demand for tractors
Meanwhile, it registered a 58 percent increase in tractor demand, while revenue grew 60 percent despite supply chain and commodity challenges. Stock Reaction M&M shares rose 2.58 per cent to Rs 850 on BSE after the announcement of March quarter results. At 2:55 pm, the stock traded with a gain of 2.32 per cent, compared to a gain of 0.6 per cent in the benchmark S&P BSE Sensex.
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