M&M Big Investment Plan for EV Business:The country’s leading automobile manufacturer Mahindra & Mahindra has made a big announcement for expansion in the electric vehicle (EV) business. The company said on Thursday that its board has approved an investment of Rs 12,000 crore in its electric vehicle unit Mahindra Electric Automobile (MEAL). This investment will be made during the next three years. M&M has also stated in the exchange filing that the company will meet the capital requirement for this investment from its internal resources and it has no plans to raise capital from outside. The company has expressed confidence in its exchange filing that M&M and its auto division have the ability to generate sufficient operating cash to meet all capital investment requirements. Mahindra & Mahindra has also announced its financial results on Thursday itself.
Deadline for proposed capital investment of BII extended
Mahindra and Mahindra has also informed that keeping in mind the current situation, it has extended the deadline for the proposed capital investment of Rs 725 crore by British International Investments (BII) with mutual consent. Now both the companies will meet together by December 31, 2024 and examine whether any additional investment is required from BII or not. So far, BII has invested Rs 1200 crore and Temasek has invested Rs 300 crore in MEAL. The company has said that Temasek will invest its remaining Rs 900 crore as per the previously decided timeline.
Also read: Adani Group acquisition: Adani Energy’s big deal, acquisition of Mahan-Sipat transmission assets of Essar Group
Investment is based on valuation of Rs 70 thousand crores
British International Investments had announced its plan to invest up to Rs 1,925 crore in Mahindra & Mahindra’s subsidiary MEAL in 2022. Britain’s Development Finance Institution is making this investment in the new EV company on the basis of its valuation of around Rs 70 thousand crore. M&M plans total capital investment of around Rs 8,000 crore between FY24 and FY27.
Also read: Mutual Funds: 5 lakhs turned into 10 to 22 lakhs! These are the top schemes which have shown such wonders in 5 years
Dividend of Rs 21.10 per share declared
According to the results announced on Thursday, M&M’s consolidated net profit during the fourth quarter ended March has increased by 4 percent to Rs 2,754 crore. In the same period last year, the consolidated net profit of Mahindra & Mahindra was Rs 2,637 crore. In the information given to the stock market, M&M said that during the fourth quarter of the financial year 2023-24, its revenue increased by 9 percent to Rs 35,452 crore, whereas in the fourth quarter of the financial year 2022-23 this figure was Rs 32,456 crore. During the entire financial year 2023-24, the company’s net profit increased by 25 percent to Rs 11,269 crore, while the revenue increased by 15 percent to Rs 1,39,078 crore. The company’s board has also approved a dividend of Rs 21.10 on each share with a face value of Rs 5.
