Mahindra and Mahindra (M&M), the country’s second-largest automaker in terms of market cap, has reported highest ever quarterly revenue and profit after tax (PAT) for the three-month ended September 30, 2022, driven by robust volume growth in both auto and farm equipment segments. “Our robust financial results reflect the progress we have made on our strategic imperatives. While the auto segment has led growth, we have seen steady performance across our group companies,” says Anish Shah, managing director & CEO, M&M.
For the July-September quarter of 2022 (Q2FY23), M&M posted the highest ever standalone profit of ₹2,090 crore, up 46% from ₹1,433 crore in the same period last year, the automobile company says in a BSE filing on Friday.
The standalone revenue jumped 57% to record ₹20,839 crore against ₹13,314 crore in the corresponding period last year.
The standalone EBITDA grew by 50% to ₹2,496 crore in the September quarter of 2022, from ₹1,661 crore in the corresponding period last year. However, the EBITDA margin dropped by 50 basis points to 12%, as compared to the same period last year.
On the consolidated basis, profit rose 46% year-on-year (YoY) to ₹2,773 crore, while revenue grew 39% on yearly basis to ₹29,870 crore during the quarter under review.
On the consolidated basis, profit rose 46% year-on-year (YoY) to ₹2,773 crore, while revenue grew 39% on yearly basis to ₹29,870 crore during the quarter under review.
Manoj Bhat, group chief financial officer, M&M Ltd, says, “Our strong revenue growth coupled with the focus on operational metrics and cost management have enabled us to record our highest standalone profits ever.”
The company in its earnings report said that its farm equipment sector registered the highest second-quarter volume, while the auto segment achieved the highest-ever quarterly volume. Besides, exports for both vehicles and tractors remained strong, it adds.
During the quarter under review, the company sold 1,74,098 vehicles, up 75% from 99,334 units in the same period last year. Tractor sales grew by 5% to 92,590 units as against 88,027 units sold in the year-ago period.
“It has been an action-packed quarter with multiple product launches and new products across segments, in addition to partnership announcements with BII and Volkswagen. We recorded our highest quarterly revenue for Auto and Farm segments. In SUVs, we continue to be the revenue market share leader. Festive sales have been strong this year across auto and farm sectors,” says Rajesh Jejurikar, executive director, M&M.
“With the unveiling of the XUV400 and our Born Electric Vision, we enter the Electric SUV segment and aim to establish a leadership position in the future,” he added.
In September, Mahindra unveiled the XUV400 electric SUV in India and its prices would be officially announced in January 2023. Besides, it also unveiled its Born Electric concept models in the U.K., which will be launched later in India.
Recently, M&M announced its partnerships with three EV infrastructure partners - Jio-bp, Statiq, and Charge+Zone - to offer charging solutions for its upcoming range of passenger electric vehicles, including the XUV400 electric SUV.
Post Q2 results, M&M share price closed 0.92% lower at ₹1,286 apiece on the BSE on Friday.
