Tractor and utility vehicle major Mahindra & Mahindra on Monday reported a 6% year-on-year growth in net profit at Rs 606.5 crore despite a 25% revenue growth at Rs 7,391.0 crore. For the whole year, net profit grew 27% to Rs 2,662.0 crore while revenue rose 26% to Rs 25,896.0 crore.
"It was a year of growth, but not short of challenges," said Anand Mahindra, vice chairman and managing director, Mahindra group, referring to interest rate hikes and input cost escalations.
M&M acquired Korean SUV maker Ssangyong and launched four new products last quarter.
During last fiscal year, M&M sold 2,30,110 units of utility vehicles and held a marketshare of 61% while it sold 2,14,325 tractors and gained 42% marketshare.
The company is "recalibrating" its motorcycle Stallio and will introduce it this fiscal, said Mahindra.
The company will have a Rs 5,800-crore capital expenditure plan for the next three years, said Pawan Goenka, president, automotive and farm equipment sector, M&M.
Mahindra Reva will launch a "full-fledged electric passenger car" NXR this year, besides a global SUV, he said.
The passenger vehicle industry may grow by 14-16%, commercial vehicle industry 12-14% and tractor industry 11-13%, given the high interest rate and inflation, said Goenka.
"Our operating profit margin declined to 13.78% during Jan-March from 15.73% in Oct-Dec due to increasing material costs," Pawan Goenka, president (auto and farm equipment) said.