Mahindra & Mahindra’s second-quarter profit increased by more than eightfold to Rs 1,432 crore

Mahindra & Mahindra (M&M) reported a more than eight-fold increase in its standalone profit after tax (PAT) for the second quarter ended September 30, 2021, to Rs 1,432 crore, on the strength of strong sales.

In the previous fiscal year’s July-September period, the Mumbai-based firm reported a standalone profit of Rs 162 crore.

M&M stated in a regulatory statement that revenue for the second quarter increased by 15% to Rs 13,305 crore, up from Rs 11,590 crore the year before.

The business stated it sold 99,334 automobiles during the quarter under review, up 9% from 91,536 units in the previous fiscal year’s second quarter.

M&M tractor sales, on the other hand, fell 5% in the second quarter, to 88,920 units, down from 93,246 in the previous quarter.

The Mahindra Group recorded a consolidated PAT of Rs 1,929 crore, up from Rs 615 crore in the second quarter of 2020-21.

In the second quarter, revenue increased to Rs 21,470 crore, up from Rs 19,227 crore in the previous quarter.

“This quarter, we saw a considerable improvement in all aspects of our performance. The better performance in the group firms matched our good success in the auto and farm industries. M&M Managing Director and CEO Anish Shah remarked, “Our investments in digital platforms are working well and present a major opportunity to develop and realize value.”

Despite significant commodity inflation, M&M Executive Director Rajesh Jejurikar stated that the Farm Equipment Sector (FES) continued to generate strong results in terms of market share and financial indicators.

“The debut of the XUV7OO was a huge success, with over 70k bookings. Our other important automotive goods continue to be in high demand. We intend to maintain the volume growth trend from Q3 onwards, thanks to improved semiconductor availability,” he added.

Commodity prices have harmed margins in both the auto and agricultural businesses, according to M&M Group Chief Financial Officer Manoj Bhat, but the company’s focus on cost management and optimization has helped minimize some of the impacts.