Mahindra & Mahindra Ltd.'s first-quarter profit nearly doubled, beating analysts' estimates, on higher sales and an improvement in the product mix.
The vehicle manufacturer's net profit surged 98% year-on-year to Rs 2,774 crore in the quarter ended June, according to an exchange filing. That compares with the Rs 1,949.6 crore consensus forecast of analysts tracked by Bloomberg.
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Revenue grew 23% to Rs 24,368 crore. (Bloomberg estimate: Rs 23,644 crore).
Ebitda grew 46% to Rs 3,547 crore. (Bloomberg estimate: Rs 3,108 crore).
Ebitda margin stood at 14.6% versus 12.22%. (Bloomberg estimate: 13.1%).
Automotive sales rose 21% to their highest-ever first quarter volumes of 1.86 lakh units, but tractor sales fell 3% to 1.15 lakh units.
The company's consolidated revenue rose 19% to Rs 33,892 crore, while net profit jumped 60% to Rs 3,508 crore.
"Auto led the way by strengthening its market leadership position and doubling its operating profit. Farm continues to increase market share quarter on quarter and deliver double-digit profit improvements," Managing Director and Chief Executive Officer Anish Shah said in a statement.
As on Aug. 1, the automaker's open bookings stood at 2.81 lakh units, reflecting visibility for future deliveries.
The issues with the availability of semiconductors have been largely resolved, and the company's producing at full capacity as of now, Shah said in a press conference to discuss June quarter results.
This larger scale of operations also led to improvement in the operating margins, he said.
Shares of Mahindra & Mahindra were trading 2.1% higher at Rs 1,500 apiece at 1:21 p.m. after the results were announced, compared with a 0.7% rise in the benchmark NSE Nifty 50.
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