M&M Q3 profit rises 14% to ₹1,528 cr; revenue jumps 41%

Mahindra & Mahindra (M&M), one of the country’s largest vehicle manufacturers, has reported a 14.4% growth in its standalone net profit at ₹1,528 crore for the December quarter of the current fiscal (Q3FY23), compared to ₹1,335 crore in the same quarter of the previous fiscal.

The revenue from operations jumped 41% to ₹21,654 crore from ₹15,349 crore in the corresponding quarter last year, the Mahindra Group company said in a BSE filing.

On the operational front, EBITDA surged 56% to ₹2,814 crore against ₹1,803 crore in the year ago period. The operating margin stood at 13%, up 130 basis points on yearly basis.

On a consolidated basis, profit after tax (PAT) climbed 35% YoY to ₹2,677 crore, while revenue grew 30% YoY to ₹30,620 crore during the quarter under review.

Anish Shah, Managing Director & CEO, M&M Ltd, said, “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.”

In the October-December period of the current fiscal, the auto major sold 1.76 lakh vehicles, up 45% as compared to the same period last year. The tractor sales also rose 14% YoY to 1.05 lakh units during Q3 FY23. Auto and farm achieved “highest ever Q3 volumes” during the quarter under review, the company said.

The company said the January 26 launch of the XUV400 was successful, which became the fastest booked Electric SUV in India with over 15k bookings within 13 days.

Rajesh Jejurikar, Executive Director, M&M Ltd, said, “Our efforts towards creating segment leading products and improving operational efficiencies have led to achievement of highest ever quarterly revenue and PBIT in Q3 F23 for Auto and Farm sectors. In SUVs, we continue to be leaders in revenue market share for the 4th consecutive quarter and have celebrated another successful launch of the XUV4OO. In the tractor business, we have achieved 41% market share, the highest Q3 market share in the last 5 years.”

Manoj Bhat, Group Chief Financial Officer, M&M Ltd, said, “Our operating margins improved by 130 basis points YoY led by operating efficiencies and our focus on fiscal discipline. We recorded our highest ever quarterly group revenue reflecting strong growth across businesses.”

Post Q3 results, shares of M&M closed 0.54% lower at ₹1,365.20 levels on the BSE, paring early gains. During the session, the auto stock touched an intraday high and low of ₹1,387 and ₹1,351.25, respectively.