Auto major Mahindra & Mahindra on Tuesday reported a multifold rise in its net profit for July-September quarter at Rs 1,432 crore from Rs 162 crore in the year-ago period. The company's revenue grew 15 per cent year-on-year (YoY) to Rs 13,305 crore during the quarter under review, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 19 per cent to Rs 1,660 crore. M&M said its auto business continues to maintain strong booking pipeline for its key products. The company sold 9 per cent higher vehicles during the quarter at 99,334 units, while its tractor sales declined 5 per cent to 88,920 units. M&M said its Farm Equipment Sector (FES) tractors market share grew 1.9 per cent YoY to 40.1 per cent during the quarter, while its electric vehicle three-wheelers volume grew 318 per cent. Operating margin was at 12.5 per cent during the quarter despite rising commodity prices and shortage of semi-conductors. "Stringent cost control measures have helped partially mitigate margin impact of commodity price increase"
Also Read: Pay Later cards are converting your monthly spends in 3 EMIs over 3 months. How does this new BNPL facility work? While the booking pipeline is very healthy and there is buoyant demand for products, M&M said the semi-conductor shortage impacted its production and sales during the quarter. It said the launch of XUV 7OO received an overwhelming response, with 50,000 bookings in three hours and over 70,000 bookings till date. On a consolidated basis, the company's profit from continuing operations rose 214 per cent to Rs 1,929 crore, while revenue grew 12 per cent to Rs 21,470 crore. "Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value," M&M MD and CEO Anish Shah said. M&M said one of its new age digital platforms Porter is valued at Rs 3,750 crore with an external funding round of Rs 750 crore. "Commodity prices have impacted our margins in both the auto and farm business, but our focus on cost management and optimization has helped mitigate some of the impact," the company's CFO Manoj Bhat said. Shares of M&M were trading 2.53 per cent higher at Rs 881 on the BSE after the announcement of results.
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