India’s Mahindra & Mahindra has reported an increase in its quarterly profit. | Tech US News


BENGALURU, Feb 10 (Reuters) – Indian carmaker Mahindra & Mahindra Ltd ( MAHM.NS ) reported a 57 percent jump in third-quarter profit on Thursday, boosted by higher revenue that it saw in the supply chain. Compensates for cost increases due to bottlenecks and semiconductor shortages. .

The company, headed by Indian billionaire Anand Mahindra, said it also saw a sharp increase in exports of automobiles and tractors in the October-December quarter.

Automakers are seeing demand pick up over the pandemic-hit 2021, but production has come under pressure due to global chip shortages and rising commodity prices. Several major Indian automakers hiked prices last year to pass on some of the extra cost to consumers.

Mahindra managing director Anish Shah said in a statement to the stock exchange, “Our auto business has performed well despite supply-side challenges, while our farm business has shown market share growth despite a sluggish market. “

Mahindra’s revenue from the auto sector grew 15 percent during the reported quarter and it said the auto business is witnessing a robust booking pipeline with over 155,000 pending orders for its vehicles.

Consolidated net profit from continuing operations rose to 19.87 billion rupees ($265.11 million) for the quarter ended Dec. 31, from 12.68 billion rupees a year ago.

Last month, rival Maruti Suzuki India ( MRTI.NS ) said it expected the chip crisis to ease, but high commodity prices remained a concern. Read more

Mahindra shares were up 0.9% by 0710 GMT, compared with the broader market ( .NSEI ) which was up 0.74%.

($1 = 74.9510 Indian Rupees)

Reporting by Kanki Monappa in Bengaluru and Aditi Shah in New Delhi; Edited by Shailesh Kabir

Our Standards: Thomson Reuters Trust Principles.


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