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Mahindra & Mahindra (M&M) has reported an 18% jump in consolidated profit for the March quarter at Rs 2,637 crore and a 56% rise in profit for FY23 at Rs 10,282 crore, on the back of robust performance across business verticals.

The Mumbai-based company had reported a profit after tax (PAT) of Rs 2,237 crore in the January-March quarter of FY2021-22 and a consolidated PAT of Rs Rs 6,577 crore in FY22.

The company said the FY23 PAT is its highest-ever profit reported in a fiscal year.

Revenue for the fourth quarter of FY23 increased to Rs 32,366 crore, compared to Rs 25,934 crore in the year-ago period. Revenue for FY23 rose to Rs 1,21,269 crore, as against Rs 90,171 crore in 2021-22 fiscal, an increase of 34%,

The auto maker has revised the capital expenditure (capex) outlay for the FY22-FY24 cycle to Rs 15,900 crore from Rs 15,075 crore.

“Secular revenue growth across the group along with strong operating leverage has helped us cross the milestone of Rs 10,000 crore in profits. Our sharp focus on capital allocation, monetisation and innovative partnerships continues to unlock value,” said M&M Group CFO Manoj Bhat.

M&M said the automotive business led the way last fiscal with 62%, driven by strong execution of launches and an improvement in supply chain related issues.

Mahindra Accelo grew by 37%, Mahindra Logistics by 24%, and Club Mahindra by 22%.

“It has been a blockbuster year for the group. Auto led the way with record-breaking launches, as we regained the #1 position for SUV revenue market share,” said Managing Director and CEO Anish Shah.

Light commercial vehicles, farm equipment, and electric three-wheelers continue to strengthen the company’s leadership position, he said.

“We are very well positioned for the future, based on a strong presence in key industries, leadership in technology and a growth mindset, coupled with fiscal discipline,” said Shah.

The company said it reported the highest-ever automotive segment volume of 6.98 lakh in FY23, up 50% from 4,65,601 units in FY22.

The vertical posted a revenue of Rs 16,400 crore, up 35% from FY22.

M&M said it was the leading player in terms of SUV revenue market share, with a fourth quarter share of 19.6%.

It noted that open bookings for its SUV range stood at 2.92 lakh units as on May 1, 2023, reflecting continued strong automotive demand.

The company said it also reported the highest-ever volume of 4.04 lakh units in the farm equipment segment in FY23.

Tractor sales stood at 4,03,981 units last fiscal, up 15%, from 3,50,981 units in FY22.

M&M Executive Director and CEO (Auto and Farm Sector), Rajesh Jejurikar, said the company remained excited about the market momentum in both the auto and farm equipment segments and about crossing the milestone of 1.1 million vehicles in FY23.

“The response to new products has been very good with exciting new launches planned over the next 12 months. The efforts on cost management have led to consistent margin improvement,” Jejurikar noted.

An additional Rs 1,600 crore will go into the conventional ICE (internal combustion engine) vehicles for the anticipated regulatory changes and capacity expansion, the company said.

An additional Rs 1,125 crore will go into the electric vehicle segment to produce vehicles with changing requirements, the automaker said in a presentation.

Another Rs 500 crore has been earmarked for auto and farm investments, said the Mumbai-based company.

On chip shortage, the company said it will “wait and watch” for the next few quarters.

Jejurikar said the waiting period for the company’s vehicle models was expected to come down substantially in the next six months with the capacity to be scaled up to 49,000 from 39,000 per month.

According to him, there was a production loss of up to 12,000 units during the March quarter due to semiconductor shortage.

He said there were no plans to launch any new products this year, which will be more about consolidation. He also said the 5-door Thar will be launched in 2024, which earlier was being speculated for this year.

About the new emission norms, Jejurikar said the company is “not working on the development of BS-VIII version immediately” till further clarification on the issue comes from the government.

M&M noted that Tech Mahindra’s revenue rose 19% with focus on margin transformation.

Mahindra & Mahindra Financial Services reported the highest-ever disbursements with assets under management up 27% and gross non-performing assets improving to 4.5%.

The company said its board has recommended a dividend of Rs 16.25 (325%) per share of the face value of Rs 5 each.