Mahindra & Mahindra Q1 profit up 56 percent at Rs 3,683 crore
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Mahindra & Mahindra Ltd. reported on Friday that its consolidated net profit increased by 56.04 per cent to Rs 3,683.87 crore in the June quarter of the current financial year. The company said that the strong performance of the vehicle segment was a major contributor to its better quarterly results.
The company’s operating income grew by 17.57 percent in the June 2023 quarter
Mahindra & Mahindra (M&M) told the stock market that the company had reported a consolidated net profit of Rs 2,360.70 crore in the corresponding quarter of the previous financial year. The company’s operating income grew by 17.57 per cent to Rs 33,406.44 crore in the June 2023 quarter from Rs 28,412.38 crore in the year-ago period. Total expenses of the company increased to Rs 30,492.08 crore as against Rs 26,195.01 crore during the period under review.
Market share increasing quarter by quarter
Dr. Anish Shah, Managing Director & CEO, M&M Ltd. said, “During the first quarter, our businesses across Auto, Farm and Services delivered a strong performance. Auto led the way by consolidating its market leadership position and doubling its operating profit. The farm is gaining market share quarter on quarter and delivering double digit profit improvement. In services, MMFSL is on its way to realize its full potential and TechM is undergoing a transformation. With this momentum, we are well on our way to deliver at scale by turning the 5x challenge around for our core businesses and growth gems.
SUV volumes cross 1 lakh milestone – Mahindra
Executive Director & CEO (Auto & Farm Sectors), M&M Ltd. said, “Our endeavor to deliver innovative product offerings coupled with strong execution has enabled a strong overall performance. In SUVs, we continue to lead in revenue market share for the sixth consecutive quarter, with SUV volumes crossing the 1 lakh milestone. In the tractor business, we have achieved 42.9% market share, the highest since Q2FY20. Our E-3W business continued to lead the market with 65.5% market share.’
Result of concerted effort – Mahindra
Manoj Bhatt, Group Chief Financial Officer, M&M Ltd. said, “Our consolidated results reflect the strong performance of our multiple businesses. We have also realized the benefits of value creation through our capital allocation operations. Our market leadership position in our automotive and farm businesses has helped us achieve operating margin gains.
Auto profits due to operating leverage
The Board of Directors of Mahindra & Mahindra Limited on Friday approved the financial results of the company and the consolidated Mahindra Group for the quarter ended June 30, 2023 (Q1). Consolidated revenue for Q1 was Rs 33,892 crore, up 19% as compared to Rs 28,414 crore in Q1 FY23, and consolidated profit after tax (PAT) was up 60% at Rs 3,508 crore. Operating leverage improved profitability by 2.2x in Auto, 58% in MMFSL and 21% in Pharm. The company said in a media release that coupled with capital allocation actions and monetization, there has been a significant increase in group profitability.
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