Indian auto giant Mahindra and Mahindra recorded a 29% YoY growth in FY22, its highest ever standalone revenue for auto and farm segments at INR 55.3K Cr.
In Q4 FY22, the company reported a 28% growth YoY with revenue generation of INR 17,124 crore as compared to INR 13,356 in the corresponding period last fiscal. During the quarter, the company sold 152,204 units of UVs, making it the highest ever quarter, registering a growth of 42%. For the full year, the company sold 455,570 units, up by 31% YoY.
In the Farm Equipment sector, the company scooped 40% of the market, which is up by 1.8% compared to previous year, with retails of 350,981 units in FY22, reported M&M. Although the market share improved, the company registered a slight de-growth in volumes, as it had sold 351,431 tractors in FY21.
From a quarterly perspective, tractor retails dropped 23% in FY22 having sold 72,058 units as opposed to 93,044 units in the same time last year.
The company also reported a significant 73% jump in e3W market share, with total retails of 16,862 units in FY22, making it the leader in the segment. Rajesh Jejurikar, Executive Director, M&M, said that the e3W business is currently at its inflection point.
Speaking of exports, Jejurikar said the company registered 32,427 units in exports in FY22, up by 77% YoY, while the FE sector registered its highest ever growth of 66% with exports of 17,515 units in FY22 as compared to 10,550 units in FY21.
Dr Anish Shah, Managing Director & CEO, M&M Ltd, said, “Our performance in Q4 and FY22 underscores the resilience of our business model. Despite significant challenges due to various factors like COVID-19, commodity prices, semiconductor shortages and the Ukraine conflict, we have delivered strong results at the consolidated level.”
Jejurikar said, “We recorded our highest revenue for auto and farm segment in FY22. M&M became No 1 in SUV revenue market share in Q4 and H2 FY22, while FES gained 180 basis points market share in FY22.”
Future Plans
During the press conference, Jejurikar confirmed that at present the XUV700 has over 78,000 bookings with a waiting period of 18 to 24 months. With the current capacity, 5,000 units of the flagship products are manufactured monthly.
Going forward, the company aims to invest around INR 11,900 core during the FY23 to FY25 time frame to expand its production capacity for XUV700 as well as others in view of the demand for current products and future products.
Additionally, Dr Shah also confirmed that with the Scorpio N, the company has revised its market predictions, unlike the XUV700. However, he expects some amount of waiting period to still persist with the new SUV.
The company aims to introduce its born electric platform on August 15, 2022 in Oxfordshire, UK. It predicts these products will also see a similar sort of demand that is being witnessed by the current M&M products. Besides, it also plans to launch the electric version of its sub compact SUV, the e-XUV300 in the first quarter of CY23, Jejurikar confirmed.
Furthermore, it also plans to invest INR 3,400 crore to enhance capacity for the farm equipment sector.
Jejurikar said that the core focus for this year would be to focus on the domestic business for the farm equipment sector along with global expansion, as the company settles the financial and profit issues with its global businesses.
The company has also confirmed to be working on e-tractors. However, the demand for such products would be limited, the MD opined, as they lack the backend torque capabilities.