Mahindra & Mahindra increases capex outlay for FY22-24 to Rs 15,900 crore
Mahindra & Mahindra on Friday said that it has revised its capex (capex) upwards for the three-year cycle FY22 – FY24 to Rs.15,900 crore from Rs.15,075 crore.
The company said an additional Rs 1,600 crore will go to conventional ICE (internal combustion engine) vehicles for expected regulatory changes and capacity expansion.
Of the revised CAPEX of Rs 15,900 crore for the FY22-FY24 cycle, an additional Rs 1,600 crore will be used in ICE vehicles for anticipated regulatory changes and capacity expansion while an additional Rs 1,125 crore is for the electric vehicle segment to produce vehicles with changing requirements, the automaker said. in a presentation.
Another Rs 500 crore has been earmarked for auto and farm investments, said the Mumbai-based company which on Friday reported an 18 per cent jump in its consolidated profit at Rs 2,637 crore in the March 2023 quarter and the highest ever annual profit of Rs 10,282. 23 crore in the financial year.
M&M said the company continued to focus on creating value through capital allocation, partnerships and monetization.
The company also said its automotive business led the way in the latest financials with growth of 62 percent, driven by strong execution of launches and improvement in supply chain-related issues.
CEO and CEO of M&M (Automotive & Farm Division), Rajesh Jegorkar, said the company remains excited about the market momentum in the automotive and farm equipment segments and about passing 1.1 million vehicles in FY23.
About the chip shortage, the company said it will be a “wait and see” for the next few quarters.
Jejurikar said the waiting period for the company’s car models is expected to drop significantly in the next six months with capacity increasing to 49,000 from 39,000 per month.
According to him, there was a production loss of up to 12,000 units during the March quarter due to a shortage of semiconductors.
He said there are no plans to launch any new product this year, which will be more about merging, and added that the five-door Thar will be launched in 2024, which was speculated earlier this year.
On the new emissions standards, Jejurikar said the company is “not working on developing a BS-VIII version right away” as long as further clarification on the issue comes from the government.
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