M&M's Q2 net profit rises 67% YoY to Rs. 3,452cr
Homegrown automaker Mahindra & Mahindra (M&M) posted a whopping 66.9% increase in standalone net profit, reaching Rs. 3,451.88 crore during the second quarter of the current fiscal year. In comparison, the company's profit after tax (PAT) was Rs. 2,068 crore during the same period last year. The remarkable growth is credited to increased sales volumes, driven by continued high demand for Sports Utility Vehicles (SUVs), aided by improved order fulfillment and supply chain enhancements.
Standalone revenue and EBITDA performance
In the quarter ending September 2023, M&M's standalone revenue experienced a 16.6% growth, amounting to Rs. 25,772.7 crore, up from Rs. 22,105 crore in the same quarter of the previous fiscal year. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 20% to Rs. 2,935 crore during the quarter under review, compared to Rs. 2,443 crore in the same period last year. The EBITDA margin improved from 11.6% to 12.1% year-on-year (YoY).
Automotive segment witnesses robust growth
During the quarter under review, M&M's automotive division saw a 22% YoY increase in revenues, reaching Rs. 18,405.46 crore. The segment's profit soared by 88% to Rs. 1,662.35 crore from Rs. 883.11 crore YoY. According to M&M, its quarterly volumes reached an all-time high of 2,12,000 units, marking an 18% increase YoY. Electric three-wheeler sales grew by 74%, while tractor sales dipped by 4% to 90,061 units.
Consolidated results and stock price reaction
On a consolidated basis, M&M's revenue rose by 15% to Rs. 34,436 crore, while net profit declined by 15% YoY to Rs. 2,348 crore. Following the announcement of Q2 results, M&M's stock price traded at Rs. 1,523.60 per share on BSE, down by 1.83% from the previous day's close.
