M&M Q2 Results: Net profit up 46%, beating estimates | Tech US News


Automaker Mahindra & Mahindra (M&M) reported better-than-expected second-quarter profit, driven by strong demand for its passenger vehicles and farm equipment. Mahindra reported profit after tax. 2,090 crore, up 46% from 1,433 crore a year ago. Total vehicles sold rose 75 percent to 174,098 units from a year ago, while there were over 260,000 open bookings for SUVs.

By comparison, analysts in a Reuters poll were expecting a profit. 1,988 crore. M&M shares traded flat. 1,279 on the BSE but the stock is up more than 50% year-to-date in anticipation of a recovery in passenger vehicle sales.

“Strong set of numbers from M&M. Topline saw outperformance as auto as well as farm equipment both performed strongly. Margins at 12% were in line with expectations. Auto as well as FES (farm (equipment) margins increased on a qoq basis. On the bottom line, higher other income and better operational performance met expected growth. Keep buying,” said Ashwin Patil, senior research analyst at LKP Securities.

Income from operations increased by 56.5% during the quarter. 20,839 crores. Earlier, rival Maruti Suzuki India reported a four-fold rise in quarterly profit, while Tata Motors saw its losses narrow on stronger demand than a year ago.

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 continued to grow our group. Companies have seen steady performance.”

Mahindra’s farm equipment segment saw the highest volume in the second quarter while the auto segment recorded its highest quarterly volume ever, the company said, as exports of both vehicles and tractors remained strong.

Rajesh Jejurikar, Executive Director, M&M Ltd., said, “It has been an action-packed quarter with several product launches and new products across segments, apart from announcements of partnerships with BII and Volkswagen. Recorded our highest quarterly revenue for the Auto and Farm segments. In SUVs, we remain the revenue market share leader. In the Auto and Farm sector, festive sales have been strong this year. The launch of the XUV4OO and our Born Electric With vision, we enter the electric SUV segment and aim to establish a leadership position in the future.

While demand for passenger cars has remained strong, Indian automakers including Mahindra are seeing softening from semiconductor shortages and high raw material prices, which have hit the industry since the pandemic. Passenger vehicle sales in India for September nearly doubled from a year ago to 307,389 units.

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