M&M increases auto capex by 1,600 crore

Chennai: Mahindra & Mahindra has announced an upward revision of earlier earmarked capex for FY22-FY24 from 15,075 crore to 15,900 crore. The increased capex will include an additional 1,600 crore spend on auto and ICE (petrol/diesel) business to 9,500 crore up from 7,900 crore earlier announced. The company also announced an additional 1,125 crore spend on electric vehicle business taking the total from 2,075 crore to 3,200 crore. The capex revision is on account of strong demand, capacity expansion, anticipated regulatory changes and new products, said top company officials.Apart from this, there will also be a 500 crore capex expansion in auto/farm equipment businesses as part of an investment into PMTC (Peugeot Motorcycles) in which M&M currently has 20% stake left. “As per the deal signed (with Germany-based Mutares which acquired controlling stake) last year we had to infuse 650 crore in PMTC so this is cost of exiting the business,” said Anish Shah, MD & CEO, Mahindra Group.M&M saw its standalone net profit for FY23 jump 34% at 6,549 crore compared to 4,870 crore in the year-ago fisc. Standalone revenue was up 47% at 84,960 crore compared to 57,787 crore in the year-ago period. The company’s consolidated PAT crossed 10,000 crore at 10,282 crore up 56% over FY22. Consolidated revenue went up 34% to 121,269 crore over 90,171 crore in the year-ago fiscal. For Q4FY23, standalone net profit increased 22% to 1,549 crore up from 12,68.5 crore in the year-ago quarter. Revenue increased to 22,571.4 crore up 31% from 17,238 crore last Q4. The company announced a dividend of 16.25 (325%) per ordinary (equity) share of the face value of 5 each. M&M shares went up 0.34% to close at 1,281.85 on the BSE on Friday.