Mahindra’s profit nearly doubles to 2,774cr in Q1

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CHENNAI: Mahindra & Mahindra’s Rs 417 crore investment for a 3.53% stake in RBL Bank will not go beyond the permissible 9.9% stake at any point and will stay at 3.5% “till we see compelling value in increasing it in the future within the permissible limit,” said Mahindra Group CEO & MD Anish Shah.

“We have no intention of getting into a bank at this point and we do not expect to go higher (than 3.53%) either. At this level, we are the third largest shareholder and this will help us understand the business more,” he added.
The company clocked a 98% jump in net profit for the first quarter of the current fiscal at Rs 2,774 crore up from Rs 1,404 in the year-ago quarter. Standalone revenue jumped 23% to Rs 24,368 crore compared to Rs 19,813 crore in the year-ago period. Ebitda at Rs 3,547 crore was up 46% year-on-year compared to Rs 2,422 crore in Q1FY23. The company’s consolidated PAT was up 60% at Rs 3,508 crore.

The company, which will invest Rs 10,000 crore in its electric vehicle business between FY22-27, has so far invested Rs 1,600 crore of which Rs 800 crore came from the Rs 1,925 crore investment into MEAL (Mahindra Electric Automobile Ltd) by BII. M&M, said Shah, is “intentionally not diluting too much in MEAL but raising capital to match cash flow to business requirements”. M&M, said executive director Rajesh Jejurikar, is getting 48,000 new bookings for its auto range every month.