Mahindra & Mahindra Ltd. reported second quarter consolidated net profit declined 15% year-on-year (YoY) to ₹2,348 crore due to a drag in Tech Mahindra’s performance. The company’s consolidated revenue for the quarter, however, grew 15% YoY to ₹34,436 crore.
On a standalone basis, the company reported a 67% growth in second quarter net profit at ₹3,452 crore, led by robust performance of its auto business.
“Mahindra & Mahindra Group delivered a robust operating performance across all businesses, except Tech Mahindra,” according to a statement released by the company. “Auto business has grown rapidly, farm business remains resilient despite tough market conditions and Growth Gems [six identified businesses with huge potential for growth] are on track. Tech Mahindra’s performance was impacted by weak demand and exits from non-core accounts,” it further added.
Mahindra reported its highest-ever quarterly sales volume at 212,078 units, up 18%. With SUV bookings at 286,000 units the company is working to minimise the waiting period.
Electric 3-wheeler volumes grew 74%. The farm business reported flat growth with demand for tractors shrinking during the quarter. Tractor market share was at 41.6%, up 150 bps. Tractor sales during the quarter dropped 4% to 89,101 units.
Anish Shah, Managing Director & CEO, M&M Ltd. while addressing a press conference said, “During Q2, operating performance across Auto, Farm and Services was robust. Auto rapidly grew to double its operating profit. Farm continues to be resilient despite tough market conditions.”
“In Services segment, Mahindra & Mahindra Financial Services Ltd.’s turnaround is on track to unlock its full potential. Growth Gems are progressing well on the 5x challenge. Tech Mahindra had a tough quarter, we are now initiating the transformation journey in the business. With H1 PAT growth of 18%, we are well on our way to deliver scale by transforming our core businesses and realising the 5x challenge for Growth Gems,” he said.
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, “We delivered yet another robust performance in this quarter. We have maintained our SUV revenue market share at 19.9% while further improving our Auto Standalone PBIT margins.”
“In the tractor business, we increased our market share by 150 bps on the back of exciting new launches of Oja, Swaraj Target and Naya Swaraj. Our E-3W business continued market leadership with 61.1% market share,” he said.
Manoj Bhat, Group Chief Financial Officer, M&M Ltd. said, “We have delivered strong H1 F24 operating performance with EPS at ₹52.4, up 18%. With focus on operational metrics and value creation through our capital allocation actions, we continue to deliver RoE greater than 18%.”
With ₹16,000 crore cash in hand, the company said it was confident to fund future growth. Having paid back ₹3,500 crore towards debt, the company is now gearing up to put more investments into its electric vehicles business.
Published - November 10, 2023 08:49 pm IST
