Mahindra & Mahindra (M&M) on Friday said its consolidated net profit surged 59.79 per cent year-on-year (YoY) to Rs 3,508.41 crore for the June quarter compared with Rs 2,195.54 crore in the same quarter last year. Revenue from operations jumped 17.57 per cent YoY to Rs 33,406.44 crore for the June quarter compared with 28,412.38 in the corresponding quarter last year.
Operating leverage drove improvement in profits by 2.2 times in the automotive segment, 58 per cent in MMFSL and 21 per cent in the farm segment. This coupled with capital allocation actions and monetisation resulted in significant step up in the group’s profitability, M&M said in a press release.
M&M said is automotive segment recorded the highest ever Q1 volumes at 1,86,000, up 21 per cent, with the open bookings of SUVs at 2,81,000-plus as on August 1, reflecting continued strong automotive demand. It said the farm equipment segment saw the second highest quarterly volume at 1,14,000.
Besides, M&M said its board has approved a scheme of merger of Mahindra Heavy Engines, Mahindra Two Wheelers and Trringo.com with the company.
Managing Director & CEO Anish Shahsaid, “During Q1, our businesses across Auto, Farm and Services delivered a strong performance. Auto led the way by strengthening its market leadership position and doubling its operating profit. Farm continues to increase market share quarter on quarter and deliver a double-digit profit improvements. In Services, MMFSL is on track to realise its full potential and transformation is underway at TechM. With this momentum, we are well on our way to Deliver Scale by transforming our core businesses and a 5x challenge for growth gems.”
Executive Director & CEO for Auto and Farm Sector, Rajesh Jejurikar, said, “In SUVs, we continue to be leaders in revenue market share for the 6th consecutive quarter with SUV Volume crossing the 1 lakh milestone. In the tractor business, we have achieved 42.9% market share, highest since Q2 F20. Our E-3W business continued market leadership with 65.5% market share”
Group Chief Financial Officer at M&M, Manoj Bhat, said: “Our consolidated results reflect the robust performance of our multiple businesses. We have also realized the benefits of value creation through our capital allocation actions. Our market leadership position in our Automotive and Farm businesses have helped us realize operating margin benefits.”
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