The home-grown automaker, M&M and Mahindra vehicle manufacturing company, recorded a PAT of INR 163 crore in the last quarter of FY21 against the net loss of INR 3,255 crore it incurred in the quarter a year ago.
In terms of the revenue, it posted a growth of 48% at INR 13,338 crore in Q4FY21 when compared to INR 9,005 crore in the same period year ago. The revenue was largely backed by the robust demand of tractors which zoomed to 60% in Q4FY21. Moreover, the auto division, which included passenger vehicles and commercial vehicle business, reported a 43% rise in Q4FY21 revenues. One can recall this over the low base of Q4FY20 when the industry was transitioning from BS-IV to BS-VI.
In a press statement, the company said the overall demand remained robust for the company’s products in Q4FY21. However, the global shortage of semiconductors impacted the production and sales for the quarter.
It also added that products like Thar and XIV300 see strong demand. While Bolero and Scorpio had strong sales with over 10,000 sales per month during Q4FY21.
Rajesh Jejurikar, Executive Director, M&M, said the company’s approach of Walk-Run-Fly delivered strong financial returns in FY21 .The margins and turnaround of global subsidiaries in FES and a robust automotive demand momentum through the focused SUV strategy have set the ground for the company to accelerate to fly.
“New products and technologies, farm machinery opportunity, Krishe and cost management sets us up for a bold, aggressive growth trajectory, “he added.
Being the company’s primary focus, the automotive sector has done cost optimisation and reduced its fixed expenses by over INR 900 crore over the last two years.
Dr Anish Shah, Managing Director & CEO, M&M, said the company’s primary focus has been ‘people first’, keeping its associates and the communities safe. “We have delivered our promise on capital allocation actions and have seen very positive results. We are now focused on growth … across our core businesses, growth gems and digital platforms.”