Mahindra & Mahindra Zooms Ahead: Q3 Net Profit Surges 60% to ₹2,454 Crore

14 Feb 2024 , 05:08 PM

The automotive sector’s strong performance, a favourable product mix, and the advantages of operating leverage all contributed to Mahindra & Mahindra’s (M&M) standalone net profit rising 60% year over year to ₹2,454 Crore. It made ₹1,528.06 Crore in Profit after Tax (PAT) in the same time the previous year.

The Mumbai-based automaker’s sales increased to ₹25,642.4 Crore in the third quarter, representing a 16 % annual gain on the back of robust volume growth in the automotive sector. Its revenue for the third quarter of FY23 was ₹21,653.74 Crore.

The business outperformed estimates in its performance. Five brokerage firms averaged their projections, which showed that the company’s standalone net profit would increase by 45 % year over year to ₹2,212.46 Crore.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the carmaker increased to ₹3,590.3 Crore from ₹3,273 Crore in Q3FY23, a 9.7% increase. The third quarter of this fiscal year saw an 80 basis point increase in its operating margin to 14%.

The manufacturer based in Mumbai had a YoY increase in volume of 11.1% to 3,13,115 units in Q3FY24. Tractor volumes fell by 4% from the prior year to 1,00,522 units during the most recent quarter, while auto sales increased by 20.1 % YoY to 2,11,443 units.

M&M Ltd.’s Executive Director & CEO (Auto and agricultural Sector), Rajesh Jejurikar, reported that the company’s auto and agricultural sectors had a ‘strong quarter.’

With a sales market share of 21% in SUVs, we topped the rankings in Q3 and continued to increase our auto standalone PBIT margins. Despite the fact that the sector as a whole shrank due to last year’s high base, erratic weather, and decreased reservoir levels, we grew our tractor market share by 80 basis points to 41.8% in the third quarter. With a Q3 market share of 54% and a YTD market share of 59.5%, our E-3W business is continuing to lead the industry, according to Jejurikar.

For the third quarter that concluded on December 31, 2023, M&M recorded a 34% increase in its consolidated profit after tax, or ₹2,658 Crore. This growth was mostly due to strong sales across all verticals. During the year under review, its revenue rose by 15% to ₹35,299 Crore, from ₹30,621 Crore during the same period last year.

Anish Shah, Managing Director & CEO of M&M Ltd., made the following statement regarding the group’s performance in Q3 and YTD F24: ‘Our businesses have delivered a solid operating performance this quarter.’ Auto expanded quickly and is still gaining market share, which has doubled its earnings. Despite challenging market conditions, Farm has increased its market share.’

He continued, “TechM is going through hard operating outcomes but I feel good that the proper initiatives are being done to reverse its performance.’

M&M’s stock ended the day trading 0.93% higher at ₹1,662 on Wednesday.

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