Mahindra’s profit up 14% driven by robust sales across segments

NEW DELHI: Mahindra & Mahindra (M&M) on Friday reported a 14% rise in its profit after tax to ₹1,528 crore for the third quarter ended December 2022, driven by robust sales across automobile and farm segments.

The Mumbai-based automaker had reported a net profit of ₹1,335 crore for the OctoberDecember period of the previous fiscal.

Its revenue surged 41% to ₹21,654 crore for the third quarter compared to ₹15,349 crore in the year-ago period.

The company said it has sold a total of 1,76,094 vehicles during the period under review, up 45% from 1,21,167 units a year ago.

Tractor sales rose 14% to 1,04,850 units in the third quarter against 91,769 units in the same quarter of the last fiscal.

“We have had another robust quarter led by the robust performance of our auto division. Our farm division also reported healthy growth with increased market share. Our capital allocation actions are continuing to show results and we remain committed to our journey of growth and returns,” M&M managing director and CEO Anish Shah said.

M&M executive director Rajesh Jejurikar said the company’s efforts towards creating segment-leading products and improving operational efficiencies have led to the achievement of the highest-ever quarterly revenue and profit before interest and tax in the third quarter for the auto and farm sectors.

“In SUVs, we continue to be leaders in revenue market share for the fourth consecutive quarter and have celebrated another successful launch of XUV4OO. In the tractor business, we have achieved 41% market share, the highest Q3 market share in the last 5 years,” he added.

Speaking at a press briefing, Jejurikar said the company is still witnessing supply disruptions which have been impacting production activities and stretching waiting periods for many models. “So while capacities are available, we will not fully be able to convert those (due to the supply issues),” he said when asked about the chip shortage and the company’s ever growing list of pending orders.

Jejurikar stated that the company’s production capacity enhancement plans are on track for the SUVs.

Shares of M&M ended lower by 0.67% at ₹1,362.95 per scrip on the BSE on Friday.

MINT The company’s revenue surged 41% to ₹21,654 crore for the third quarter.