Mahindra & Mahindra announces ₹12,000 crore EV investment and dividend payout

In a stock exchange filing, the automaker said that the investment will be made over a time period of three years until March 31, 2027.

The electric vehicle manufacturing arm of the company was incorporated in October, 2022, and nearly three years later, the company’s net worth stood at ₹3,207.14 crore at the end of FY24. The total income of the company at the end of FY24 was ₹56.96 crore.

Mahindra and Mahindra informed the bourses that it plans to accelerate the growth of its four wheel passenger electric vehicle business via this investment. The automotive company said that the electric vehicle manufacturing unit will use the funds to create and market a world-class Electric SUV portfolio.

The EV arm of M&M has so far attracted investments from UK-based British International Investment (BII) and Singapore’s Temasek. BII has invested ₹1,200 crore in MEAL. On the other hand, the Singapore-based investment firm has invested ₹300 crore and the remaining ₹900 crore would be invested within the due timeline, according to Mahindra and Mahindra.

Mahindra & Mahindra post robust Q4 result along with dividend

The Thar maker’s total consolidated income witnessed a growth of 9% increasing to ₹35,807 crore in the fourth quarter of FY24 against ₹32,849 crore in the corresponding quarter of the preceding fiscal year.

Sequentially, the company’s total income fell marginally by 0.06% from ₹35809 crore in the December quarter. In FY24 the automobile manufacturer’s total income grew by more than 15% to ₹1,41,254 crore against ₹1,22,528.91 crore in FY23.

The homegrown automaker’s PAT (Profit After Tax) for the March quarter grew by more than 4% YoY to ₹3,124 crore against ₹2,998 crore in the corresponding quarter of FY23. On a quarter-on-quarter basis, the company’s PAT grew 4.9% from ₹2,977 crore in the December quarter.

Along with the Q4 result, Mahindra and Mahindra also declared a dividend of ₹21.10 per equity share of ₹5 face value. The record date for the dividend is July 5, 2024, and the dividend will be paid after July 31, 2024.

The company’s PAT for FY24 grew by 7.8% to ₹12,269 crore compared to ₹11,374 crore in the preceding fiscal year.

Shares of Mahindra and Mahindra trades at ₹2,519 apiece, up 6.2%, on the NSE.