M&M Share price: Key highlights of the Q4 number below

M&M Q4 Consolidated Revenues at Rs 21456 crs up 32%, while Consolidated Q4 PAT before Exceptional items stood at Rs 1834 cr up 170%. Also, FY21 Operating Cash Generated stood at Rs 10022 cr up 119%. Farm Equipment Sector Revenue was up 60% in Q4FY21, with highest ever fourth quarter domestic volumes, PBIT and PBIT margins. Auto Sector Revenue up 43% in Q4FY21, with a strong booking pipeline for its key products; however, supply constraints limit production and sales.

M&M Capital Allocation actions are seeing good results. Exceptional Items (EI) loss in Q4F21 reduces from Rs 3578 cr to Rs 840 cr YoY. M&M delivered Strong operating performance for Full Year FY21. The Consolidated Operating Profit of M&M stood up 36% at Rs 4610 cr. The Operating Cash Generated for FY21 stood up 119% at Rs 10022 cr, driven by improved profitability and robust working capital management. M&M Announces a dividend of 175% of face value ( Rs 8.75 per share) for FY21, which is 3.7x F20 dividend. This is the highest ever in the history of M&M, in light of the strong financial performance and to commemorate the 75th year of the Company.

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Highlights of the financial results are below:

Operating margin improved to 14.7% compared to 13.6% in the corresponding quarter previous year despite a significant strengthening in commodity prices
Capital allocation actions resulted in a significant decline in Exceptional losses … from Rs (3,578) cr. in Q4FY20 to Rs (840) cr. in Q4FY21.
− Operating Cash Generated for FY21 up 119% at Rs 10,022 cr… driven by improved profitability and robust working capital management.

Automotive Section:

Overall demand remained robust for M&M products in Q4FY21. However, the global shortage of semi-conductors impacted the production & sales for the quarter.

Thar has crossed bookings of 55,000 vehicles since its launch:

1)     Tested to be India’s safest off-roader with a four-star rating
2)     It has won accolades from customers and nineteen awards.

XUV300 has also seen a strong demand with 90% growth in bookings in H2FY21 over H2FY20
Bolero, Scorpio had strong sales of over 10000 sales per month during Q4FY21
The Automotive Sector continued its focus on cost optimization and reduced its fixed expenses by over Rs 900 cr over the last two years & hence keeping its margin resilience even under challenging times.

Farm Equipment Section:

M&M displayed Strong performance despite supply chain and commodity challenges:
Tractor volumes up 58% and revenue up 60%
PBIT for Q4FY21 at Rs 1095 cr – a growth of 100% yoy
PBIT margin for Q4F21 increased to 22.0% from 17.6% in Q4FY20
Subsidiaries of the Farm Equipment sector registered positive PBIT for the third consecutive quarter with a turnaround in its international operations

Commenting on FY21 performance, Anish Shah, Managing Director & CEO, M&M , said, “Our associates deserve all the credit for an outstanding performance in a tough year. Our primary focus has been “people first”, keeping our associates and our 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”