Q1 Results: M&M’s Profit Meets Estimates
M&M’s profit rises 67 percent from a year ago in the quarter ended June.
Mahindra & Mahindra Ltd.’s profit rose in line with estimates in the quarter ended June on the back of strong operational performance.
Net profit rose 67 percent from a year ago to Rs 1,257 crore, the Anand Mahindra-led automaker said in an exchange filing today. That compares with the Rs 1,176 crore consensus estimate of analysts tracked by Bloomberg. The bottom line was aided by an exceptional gain of Rs 20.8 crore.
Revenue of the maker of XUV 500 sports utility vehicle rose 23 percent year-on-year to Rs 13,358 crore, driven by growth in the automotive segment. The company sold 1.3 lakh vehicles in the first quarter, including 96,000 tractors and 12,700 exported units.
- Revenue from the automotive segment rose 23 percent to Rs 8,032 crore.
- Farm equipment sales jumped 24 percent to Rs 5,007 crore.
- Revenue from the ‘others’ segment grew 2.5 percent to Rs 405 crore.
The company’s operational performance met estimates despite higher commodity costs. Earnings before interest, tax, depreciation and amortisation rose 47 percent on a yearly basis to Rs 2,110 crore, while operating margin expanded 140 basis points to 15.8 percent.
Shares of the automaker swung between gains and losses and were trading 0.6 percent higher at 1:40 p.m., after the results’ announcement.