Anish Shah.
| Photo Credit: PTI

Mahindra & Mahindra Ltd. (M&M) reported fourth-quarter consolidated net profit grew 4% YoY to ₹2,754 crore, weighed down by weaker profitability at Tech Mahindra.

Consolidated revenue grew 9% to ₹35,452 crore. Net profit grew 10% in FY24 to ₹11,269 crore and revenue rose 15% to ₹1,39,078 crore.

“It has been an excellent year with most of our businesses delivering high level of performance,” said MD & CEO Anish Shah. “Auto continued its high growth trajectory, farm gained share in a tough market and Mahindra Finance delivered on asset quality. Tech Mahindra was a weak spot, the turnaround has commenced with the new organisation in place,” Mr. Shah added.

The auto segment posted FY24 profit growth of 64% at ₹10,718 crore as revenue grew 17% to ₹1,01,219 crore.

SUV push

M&M announced plans to invest ₹37,000 crore in the next three years on new models, with ₹27,000 crore to be invested in the auto business: ₹14,000 crore for ICE vehicles and ₹12,000 crore for EVs.

By 2030, M&M aims to introduce nine ICE and seven EV SUVs and another seven LCVs. Production was being ramped up from 49,000 units a month in FY24 to 64,000 units a month in FY25 and 72,000 units a month in FY26.

In FY24 the firm sold 8,24,939 vehicles, up 18%. But tractor sales were down 7% to 3,74,955 units.

The board has declared a dividend of ₹21.10 per equity share with face value of ₹5. 

FirstCry parent BrainBees filed papers with SEBI last December for an IPO that would have been one of the country’s biggest this year. 
| Photo Credit: Special Arrangement

Retailer FirstCry is set to withdraw its papers for an up to $500 million Initial Public Offering (IPO) as early as next week, after markets regulator raised questions over key metrics it disclosed to investors, said three sources with direct knowledge of the issue.

FirstCry, backed by SoftBank, TPG and India’s Mahindra and Mahindra sells baby products, including clothes, diapers and toys, seeking to tap the market for new parents in the world’s most populous country.

FirstCry parent BrainBees filed papers with Securities and Exchange Board of India (SEBI) last December for an IPO that would have been one of the country’s biggest this year. While it filed to raise about $215 million via fresh shares, it plans to raise $300 million more via sale of existing shares, the sources said.

However in recent weeks, SEBI told the company it had not complied with Indian regulations that mandate an IPO-bound company must share all key business metrics that in its papers that it has shared with prospective investors in the last three years, the three sources said.

FirstCry and SEBI did not return requests for comment.

SEBI introduced this rule in 2022, hightening scrutiny of companies looking to list, after wide-spread criticism on the seemingly lax oversight over large loss-making companies which have commanded lofty valuations.

FirstCry’s Key Performance Indicators (KPIs), include its average order value, annual transacting customers and number of orders, its papers show.

FirstCry will now withdraw its IPO papers, make changes and refile them as early as next week, two of the sources said.

For the year ended March 31, 2023, its losses jumped six times to $57.6 million, while its total income more than doubled to $684 million, its draft papers show.