M&M Oct Business Update: Total Sales Jump Nearly 26%, Production Rises

Mahindra & Mahindra Ltd.'s total sales for October saw a surge of 24.8% year-on-year, as per an exchange filing on Saturday.

The company's total sales were at 1.18 lakh units, compared to 93,875 units in the year-ago period.

Total production also rose 5.7% to 94,637 units from 89,570 units in the same period last year. Exports saw an increase of 14.1% to Rs 4,079 units from 3,574 units in October last year.

• Revenue up 21.3% to Rs 33,421.60 crore versus Rs 27,553.26 crore

• Net Profit up 18% to Rs 4,520.52 crore versus Rs 3,840.88 crore

• Ebitda up 23% to Rs 4,809.22 crore versus Rs 3,904.17 crore

• Margin at 14.4% versus 14.2%

Its standalone net profit to rose to Rs 4,520.52 crore. Analysts polled by Bloomberg had pegged the bottom line at Rs 3,978.92 crore.

Revenue in the quarter under review rose 21.3% to Rs 35,079.82 crore in comparison to Rs 28,919.34 crore. Operating income, or earnings before interest, taxes, depreciation, and amortization rose 23% to Rs 6,467.44 crore.

Mahindra & Mahindra reported a strong performance across its automotive and farm segments during the quarter. In the auto business, quarterly volumes stood at 262,000 units, marking a 13% increase, with utility vehicle volumes at 146,000 units.

The company’s SUV revenue market share rose sharply to 25.7%, up 390 basis points, while its light commercial vehicle (under 3.5 tonnes) segment captured a 53.2% share, higher by 100 basis points.

In the farm equipment segment, Mahindra’s tractor market share improved to 43.0%, a gain of 50 basis points, with volumes rising 32% year-on-year to 123,000 units. The company also maintained strong momentum in the electric three-wheeler space, holding a market share of 42.3%.

The auto giant offloaded 3.45% stake worth Rs 678 crore in private lender RBL Ltd.

It was likely conducted at the floor price of Rs 317 per share, which is at 2.1% discount to the last closing price, according to the deal terms reviewed by NDTV Profit at a time when the seller was unannounced.