Mahindra posted strong growth in Q2 and H1 FY2023. 46% increase in PAT | Tech US News

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Indian carmaker Mahindra & Mahindra has been on a dream run ever since the brand revamped its model range. Its new SUVs like Mahindra XUV700, Scorpio-N and Thar have seen record bookings and this is reflected in its earnings. The company posted a better-than-expected second-quarter profit after tax (PAT) of Rs. 2,090 crore, an increase of 46% compared to Rs. 1,433 crore was recorded in the corresponding period last year.

On the back of its newly introduced models, Mahindra’s sales grew 75 percent to 1,74,098 units as against 99,334 units sold in the same period a year ago. In fact, the company’s order book showed open bookings for 2,60,000 units. Income from operations increased by 56.5% during the quarter to Rs. 20,839 crores. The Mahindra Farm Equipment segment also saw the highest second-quarter volume while the auto segment achieved the highest quarterly volume ever.

Anish Shah, Managing Director and CEO, M&M Limited said, “Our strong financial results reflect the progress we have made on our strategic imperatives. While the auto segment has grown, we have Group companies have seen stable performance.”

As for H1 earnings, the company saw its PAT grow 54 percent to Rs. 3,520 crore in the first two quarters of FY23 as against Rs. 2,290 units in the same period a year ago. In H1 FY2023, the company saw its revenue grow by 61% to Rs. 25,079 crore as against Rs.40,452 crore in the same period a year ago. It recorded a 75% growth in SUV sales at 3,23,901 units compared to 1,85,192 units sold in the first half of last fiscal. Even its agricultural equipment segment saw a growth of 12 percent with 2,10,003 units sold as against 1,87,154 units sold in the same period last year. The company has already launched the updated Mahindra XUV300 subcompact SUV and is gearing up to launch the XUV400 EV in the next quarter which should give its sales a shot in the arm.

Although demand for passenger cars is strong, Indian automakers are facing challenges in the form of semiconductor chip shortages and skyrocketing raw material prices. , which has affected the industry since the pandemic. The passenger vehicle segment in India recorded a nearly two-fold increase in sales at 3,07,389 units in September this year, mainly due to a lower base last year when vehicle sales were affected by the semiconductor crisis. .

Leading Indian automakers such as Maruti Suzuki and Tata Motors also posted positive results. While Maruti Suzuki reported a four-fold rise in quarterly profit, Tata Motors saw its losses narrow over the same period last year, driven by strong demand from its recent launches.

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