- 30 May 2022
- ICICIdirect Research
Mahindra & Mahindra reports steady performance in Q4FY22
M&M - 2805 Change: 47.80 (1.73 %)News: Standalone net sales for the quarter stood at Rs 17,124 crore (up 12.4% QoQ). This is amidst 29% QoQ increase in automotive segment sales volumes at 1.56 lakh units while tractor volumes recorded 22% QoQ decline to 72,826 units. Standalone EBITDA in Q4FY22 stood at Rs 1,946 crore with corresponding EBITDA margins at 11.4% (down 50 bps QoQ). Consequent standalone PAT for the quarter came in at Rs 1,292 crore down 4.5% QoQ, supported by lower effective tax rate and exceptional gains.
Views: Automotive ASP’s were down by 1.7% QoQ to Rs 7.74 lakh/unit with tractor ASPs were up by 5.8% sequentially at Rs 5.94 lakh/unit. Gross margin decline for the quarter was ahead of estimates at ~160 bps QoQ, however substantial savings were realised in employee expenses which for the quarter were down 140 bps on QoQ basis. For Q4FY22, automotive segment posted ~190 bps increase in EBIT margins QoQ to 5.6% while tractor segment EBIT margins dipped by ~160 bps QoQ to 15.7%. Company has declared a dividend of Rs 11.55 per share for FY22. Company continues to remain net debt free on standalone basis with CFO for FY22 placed at ~Rs 7,100 crore with corresponding FCF being placed at ~Rs 3,850 crore. It remains committed to 18% RoE target.
Impact: Neutral