M&M Q2 Results: Profit Rises On Better Sales
Mahindra & Mahindra Ltd.’s second-quarter profit rose as sales improved.
Net profit before tax and exceptional item for the sports utility vehicle maker stood at Rs 2,141 crore in the July-September period, up 78% over the preceding three months, according to an exchange filing.
M&M reported an impairment worth Rs 255 crore on long-term investments during the quarter.
Adjusted for the exceptional item, net profit stood at Rs 1,431 crore compared with Rs 856 crore in the preceding quarter. That compares with the Rs 1,180-crore consensus estimate of analysts tracked by Bloomberg.
Q2 Key Highlights (QoQ)
Revenue up 13% to Rs 13,305 crore, compared with the Rs 12,386-crore forecast.
Ebitda up 2% to Rs 1,659 crore, against the projected Rs 1,643 crore.
Ebitda margin contracted to 12.5% from 13.9%. Analysts had pegged the metric at 13.3%.
“We have seen a significant all-around improvement in our performance this quarter. Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies," Anish Shah, managing director and chief executive officer at M&M, said in the statement.
M&M, grappling with prolonged supply-side constraints, however, saw its overall automotive sales rise 17% sequentially to 1,01,680 units in the quarter ended September. Sales of its passenger cars, too, rose 17% to 50,153 units.
The company said the global shortage of semiconductors has impacted the production and sales for another quarter. But stringent cost control measures have though helped partially mitigate the margin impact of commodity price increase.
M&M’s tractors sales fell 11% sequentially to 88,920 units in the reported quarter.
Rajesh Jejurikar, executive director at M&M, said the farm equipment sector continued to deliver robust performance in terms of market share and financial metrics despite steep commodity inflation.