Leading automaker Mahindra and Mahindra (M&M) on Wednesday reported 61% growth in its standalone net profit at INR 2,454 crore for the quarter ended December, which was slightly below expectations. The same stood at INR 1,528 crore in the last year quarter.
An ET Now poll saw the profit to be around INR 2646 crore.
The company has reported an EBITDA of INR 3,590 crore in the third quarter, which is up 10% from INR 3,273 crore posted in the corresponding quarter of the previous year.
“Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions,” said Anish Shah, MD & CEO, M&M.
In the auto segment, the company clocked highest-ever third-quarter volumes at 211,000, up 20% YoY. It also reported record UV volumes at 119,000.
The open bookings of the SUV currently stand at 226,000 as of February 1, reflecting continued strong demand for the segment.
The standalone PBIT for the auto segment (excluding PY Trucks impairment) rose 56% YoY to INR 1,533 crore and PBIT margins improved 170 basis points to 8.3%.
For the farm business, the tractor market share improved to 80 basis points to 41.8%, which is the highest since FY19. The farm machinery revenue rose 28% YoY to INR 221 crore.
The standalone third quarter PBIT fell 5% to INR 1,042 crore, but PBIT margins were up 20 basis points to 16.4%.
“We had a strong quarter for both Auto and Farm businesses. We were number one in SUVs in Q3 while further improving our auto standalone PBIT margins. We increased tractor market share even as the Tractor industry contracted on the back of last year’s high base, weather vagaries, and lower reservoir levels,” said Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), M&M.
In the services segment, Mahindra and Mahindra Financial Services AUM (assets under management) increased 25% in the reporting third quarter. However, PAT was down 12% due to writeback in PY.
Tech Mahindra‘s revenue fell 5% and PAT dropped 61% in the December quarter due to lower deal closures and muted demand cycle.
Mahindra Lifespaces, on the other hand, reported residential pre-sales of INR 433 crore with a PAT growth of 51%. Mahindra Logistics clocked a revenue of INR 1,397 crore in the October-December period, up 5% YoY.
On Wednesday, Mahindra and Mahindra shares were trading 0.44% higher at INR 1,654 on NSE.
