Mahindra to invest ₹12000 crore in EV business till FY27, remain aggressive on IC-engine biz
₹12,000 crore in the EV business over the next three years, it has also marked out a larger capex of ₹14,000 crore for its conventional IC-engine business. The latter will see six brand new SUVs and three model refreshes by 2030, the company said on Thursday while announcing its Q4 results for FY24. The ₹26,000-crore capex push follows the company's strong show in its core automotive business, with standalone net profit for the auto and farm business rising 32% to ₹2,038 crore for the quarter ended March, compared to the same period a year ago.
The automaker said it clocked record sales of utility vehicles at 126,000 units during the quarter. M&M’s revenue from operations in Q4FY24 increased 11.24% year-on-year (y-o-y) to ₹25,108.97 crore from ₹22,571.37 crore. Its operating income during this quarter rose 12% y-o-y to ₹3,119 crore from ₹2,789 crore in Q4FY23, while Ebitda margin remained flat at 12.4%.
Ebitda refers to earnings before interest, tax, depreciation and amortization. The company’s shares closed 3.05% higher at ₹2,372.85 on Thursday. The company said its investment in its EV unit—Mahindra Electric Automobile Ltd (MEAL)—will be self-funded, as it expects to generate all of the operating cash needed through its revenue.
It has, therefore, decided to extend the timeline for the final tranche of its investor British International Investment (BII)’s ₹725-crore investment, whereas it will receive ₹900 crore from Singapore-based Temasek “as per agreed timelines". UK-based BII had announced a deal to invest up to ₹1,925 crore in MEAL in 2022, while Temasek joined MEAL's cap table with a ₹1,200-crore investment in 2023. BII and Temasek have so far invested ₹1,200 crore and ₹300 crore, respectively, in the business.
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