On Thursday, Mahindra & Mahindra (M&M) reported a 4 per cent increase in consolidated profit after tax (PAT) at Rs 2,754 crore for the March quarter, driven by strong performance of its automotive and farm sector segments. In the same quarter last year, M&M’s PAT was recorded at Rs 2,637 crore, the company said in a filing with the exchanges.

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It added that revenue increased to Rs 35,452 crore in the fourth quarter, registering a growth of 9 per cent compared to Rs 32,456 crore in the corresponding period a year ago.

The company's automotive business brings in almost two-thirds of total revenue and includes the sale of commercial vehicles and SUVs such as Scorpio and Thar, said the Reuters report. During the quarter, the company sold 27.2 per cent more SUVs or sports utility vehicles as compared to the same period last year.

Nevertheless, the company's tractor and farm equipment segment logged a 21.5 per cent decline in sales, as sub-par rains affected rural demand. Revenue from the automotive segment revenue rose 20 per cent, while that of the farm equipment segment fell 13.1 per cent, said the company.

“Mahindra & Mahindra reported solid operating performance across multiple businesses in FY24. Auto had another solid year with profits growing 2.5x. Farm improved market share in a declining industry. Financial services made strong progress on asset quality with record low GS3. Growth gems progressed well on the 5x challenge with continued value unlocking,” noted the company’s release.

“Auto continued its high growth trajectory, Farm gained share in a tough market and Mahindra Finance delivered on asset quality. TechM was a weak spot, the turnaround has commenced with the new organization in place. Growth gems are performing well, with Susten and LMM leading the way,” said Dr. Anish Shah, Managing Director & CEO, M&M on the company’s Q4 and FY24 performance.

The automaker, on the sidelines, approved an investment worth Rs 12,000 crore in Mahindra Electric Automobile Limited (MEAL), a subsidiary of the company, for funding its EV journey over the next three years.

Alongside the results, the company's board approved the dividend of Rs 21.1 per share of the face value of Rs 5 each.

After the earnings release, shares of M&M traded higher by close to 1 per cent at Rs 2322.50 per share on the BSE, while at day’s high it scaled to Rs 2,338.

(With agency inputs)