Mahindra Electric Latest News
Mahindra Electric's revenues have grown rapidly in recent years on the back of the booming sales of electric vehicles in India. The company's revenues stood at Rs 450 crore in the financial year ended March 31, 2021, up from Rs. 204.41 crore in the previous financial year.
The company's losses have also shrunk significantly, from Rs 107 crore in FY2 to just Rs 70.5 crore in FY22. This is largely due to the growing sales of electric vehicles in India, which have helped offset the higher costs associated with manufacturing and marketing these vehicles.
Looking ahead, Mahindra Electric is well-positioned to capitalize on the growing demand for electric vehicles in India. With a range of new products in the pipeline and a strong distribution network, the company is poised for further growth in the coming years.
Mahindra Electric's operating revenue grew 2.17x to Rs 44.388 billion in FY 2022 from Rs. Electric vehicle sales were the main source of income. Accounting for 67% of operating profit, it increased by 2.8 times to Rs 296.8 crore in FY22 from Rs 106.39 crore in the previous fiscal year. Mahindra Electric's portfolio consists of 2 vehicles (eVerito and E20Plus) and 6 vehicles including e-pedicab and e-car (passenger and freight segments).
Product development and design fees were the other major source of revenue, increasing by 21.8% to Rs 83 Crore in FY2022. Sales of kits and spare parts earned Mahindra Electric Rs 63 crore in FY22. Mahindra Electric witnessed material costs as the biggest cost center because of reasonable manufacturing rates. Material costs totaled Rs 256.5 cr in FY22, up 11.9% from Rs 231.2 cr in the preceding fiscal year (FY21). Material costs also constituted half of the overall costs in FY22, up from 50.1% in FY21.
Mahindra Electric saw an increase in manufacturing costs for both capitalized and variable costs-- the increase in variable costs was likely a result of severe labor shortages which reduced the ability of development engineers and other manufacturing personnel to work.
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Mahindra Electric spends more on advertising, promotion and transportation than on research and development. The company spends Rs 517.7 crore ($74 million) on everything from advertising, promotion and transportation. All this presumably helps the electric car maker to increase its sales, at least when it isn't subject to import tariffs or other government-imposed restrictions. However, keeping costs stable means harmful cuts to R&D, research and development, which is why the company's operating losses increased from 35 percent in the previous year to 64 percent this year.
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