M&M Q1 Results: Revenue increased 22% YoY, while profit nearly doubled at Rs 2,774 crore

4 Aug 2023 , 03:40 AM

Mahindra & Mahindra, a key player in the automotive industry, announced a standalone net profit of Rs 2,774 crore on Friday, a 98% increase from the Rs 1,404 crore recorded in the same quarter last year.

The quarter’s operating revenue increased 22% year over year (YoY) to Rs 24,056 crore.

EBITDA (profits before interest, tax, depreciation, and amortisation) for the first quarter of the year was Rs 3,547 crore, a 46% increase over the same period the previous year.

The business reported first-quarter automobile segment volumes of 186,000, a 21% increase over the same period last year, the most ever.

As of August 1, there were 281,000+ open bookings for SUVs, demonstrating the ongoing high demand for automobiles.

With 114,000, M&M had the second-highest quarterly volumes in farm equipment. Revenue from farm machinery was Rs 181 crore, up 24% year over year.

‘Our businesses in the auto, farming, and services sectors produced a great performance in Q1. Anish Shah, MD and CEO of M&M, stated that Auto ‘led the way by strengthening its market leadership position and doubling its operating profit.’

The automotive industry recorded a standalone PBIT of Rs 1,252 crore, an increase of 86% YoY, and the PBIT margin increased by 220 bps to 7.5%.

Farm equipment’s standalone PBIT increased 16% year over year to Rs 1,303 crore. The segment’s PBIT margin increased by 160 bps to 17.5%.

‘A solid overall performance has been made possible by our effort to provide customers with unique product options that are executed well. According to Rajesh Jejurikar, ED and CEO (auto and farm sector), M&M, we have maintained our position as market leaders in revenue share for SUVs for the sixth consecutive quarter.

The company’s market share in the tractor industry has reached 42.9%, which is the highest level since the second quarter of FY20.

The company’s shares were trading 1.37% higher at Rs 1,489.30 on Friday on the NSE.

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