Mahindra -; Mahindra Q3 net up 182% yoy at Rs1,987cr on exceptional losses in Dec-20 quarter

10 Feb 2022 , 11:45 PM

Mahindra & Mahindra reported 9.10% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs23,594cr. On a sequential basis, the revenues were up by 9.90%.

During the December 2021 quarter, the automotive business grew 15.21% you at Rs9,958cr. During the same quarter, the farm equipment business saw sales grow by 2.3% at Rs6,970cr.

Revenues from the financial services business were flat with slight negative business. The XUV 700 saw 100,000 plus bookings in 4 months while auto export volumes were up 58.3%. The quarter also saw tractor market share of 39.4% of the Indian market.

For the Dec-21 quarter, the operating profits were up 68.54% at Rs2,625cr. During the quarter, the operating margins stood at well above the 11% mark despite commodity inflation and microchips shortage.

There was solid traction in the operating performance of M&M Financial Services and the real estate business. The yoy EBITDA was down -24% at Rs1,806cr in the quarter.

Operating margins improved sharply from 7.20% in the Dec-20 quarter to 11.12% in the Dec-21 quarter. On a sequential basis, the net margins were lower on a yoy basis.

PAT for the Dec-21 quarter was up 182.15% yoy at Rs2,625cr on the back of exceptional losses in the Dec-20 quarter. The company booked losses of over Rs.998 crore towards the discontinued business of Ssangyong Motors. This magnified the base and made the profits growth sharply higher for the stock.

PAT margins improved from 3.26% in the Dec-20 quarter to 8.42% in the Dec-21 quarter. The PAT margins were lower by 56 bps on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Mahindra & Mahindra
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 23,594.46	₹ 21,625.95	9.10%	₹ 21,469.80	9.90%
Operating Profit (Rs cr)	₹ 2,624.83	₹ 1,557.37	68.54%	₹ 2,978.48	-11.87%
Net Profit (Rs cr)	₹ 1,987.44	₹ 704.39	182.15%	₹ 1,928.64	3.05%
Diluted EPS (Rs)	₹ 17.79	₹ 6.30		₹ 17.26
Operating Margins	11.12%	7.20%		13.87%
Net Margins	8.42%	3.26%		8.98%