The company reported a consolidated profit of ₹10,282 crore after exceptional items, a surge of 56% over the preceding year. Revenues grew by 34% to ₹1.21 lakh crore.
The company also outlined a new strategy for the coming five years with a focus on capitalizing on its market leadership in segments like SUVs, tractors and pickup trucks while scaling its growth-phase businesses five-fold during this period.
During FY23, at a standalone level, the maker of SUVs and tractors saw its profit grow 34% to ₹6,549 crore after exceptional items. Revenue grew by 47% to ₹84,960 crore.
Meanwhile, for the March quarter, the company reported a standalone profit of ₹1,549 after exceptional items, higher 22% on-year. Revenue improved 31% to ₹22,571 crore.
The improvement in financials was led by the company's automotive segment, where revenue surged 63% on-year to ₹58,511 crore, on the back of multiple successful launches. The profit before interest and tax (PBIT) for the automotive segment almost tripled to ₹3,750 in FY23.
The company has an outstanding orderbook of almost 300,000 units, resulting in waiting periods of over a year for some popular models. The cancellation rate of bookings has been around 8%, the company said.
The margins in the automotive segment have also improved to 7.3% during the March quarter, the highest since FY19, when the company logged margins of 7.8% for its auto division.
In the farm machinery segment, the company reported a 29% year-on-year growth in revenue to ₹5,584 for the March quarter. PBIT improved 38% on-year to ₹932 during the quarter. Margins for the segment during the quarter at 16.7% was again the highest since FY23, when the segment had clocked 19.3% margin.
Looking forward, the company said that it does not see El Nino as a concern. Citing data for the past 50 years, the company said that there was no co-relation between El Nino events and farm equipment sales.
The company also declared a dividend of ₹16.25 per share. M&M stock ended the day 0.34% higher at ₹1,281.85 compared to a 1.02% surge in benchmark Sensex.
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