Net profit of Mahindra & Mahindra jumped 61% year-on-year to ₹2,454 crore for the quarter ended December 31, 2023, led by strong performance by the auto business. Profit stood at ₹1,528 crore in the third quarter of the previous fiscal.

The Mumbai-based company’s revenue rose 16% year-on-year to ₹25,642 crore during the third quarter as against ₹22,113 crore in the year-ago period.

Operating profit or earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 10% to ₹3,590 crore.

“Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions. In Services, MMFSL had its lowest ever GS3 and credit costs are trending as per guidance. TechM is working through challenging operating results but I feel good that the right actions are being taken to turnaround its performance. We continued the journey of unlocking value in our growth gems with the listing of India’s largest renewable InvIT and partnerships with marquee investors,” says Anish Shah, Managing Director & CEO, M&M.

Margin from the auto business increased to 8.3% in Q3 FY24 from 6.6% in Q3 FY23. Average bookings continue to be 50,000 per month, with the Thar (RWD) rear-wheel drive having the longest waiting period.

The carmaker expects its utility vehicles to grow faster than the industry in the mid to high teens.

“We had a strong quarter for both Auto and Farm businesses. We were #1 in SUVs with Revenue Market Share of 21% in Q3 while further improving our Auto Standalone PBIT margins. We increased tractor market share by 80 bps to 41.8% in Q3 even as the Tractor industry contracted on back of last year’s high base, weather vagaries and lower reservoir levels. Our E-3W business is maintaining its market leadership with Q3 market share of 54% and YTD market share of 59.5%,” says Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M.

The government’s spending on agriculture and rural development remained weak in the third quarter of FY24, the company says. Erratic distribution of rainfall adversely impacted kharif output, affecting farm equipment sales, it says.

“We continue to meet our objectives of 18% RoE and value creation from capital allocation actions. It has been a good quarter with multiple business showing growth momentum,” says Manoj Bhat, Group Chief Financial Officer, M&M.

The board of the company also approved the appointment of three additional directors including former chief executive of electric carmaker Nio Inc. Padmasree Warrior.

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