M&M Q2 Results: Profit Rises 18%, Beats Estimates

Mahindra & Mahindra Ltd. posted a 18% advance in consolidated net profit in the three months ended September.

M&M's net profit rose to Rs 4,520.52 crore in the second quarter, according to an exchange filing on Tuesday.

Mahindra & Mahindra Q2 Highlights (Consolidated, YoY)

• 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%

Mahindra & Mahindra posted a 18% advance in standalone net profit to Rs 4,520.52 crore in the second quarter. Analysts polled by Bloomberg had pegged the bottom line at Rs 3,978.92 crore.

Revenue in the second quarter 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 Q2 Highlights (Standalone, YoY)

• Revenue up 21.3% to Rs 35,079.82 crore versus Rs 28,919.34 crore (Estimate: Rs 33,886.55).

• Net Profit up 18% to Rs 4,520.52 crore versus Rs 3,840.88 crore (Estimate: Rs 3,978.92).

• Ebitda up 23% to Rs 6,467.44 crore versus Rs 5,270.25 crore (Estimate: Rs 4,810.76).

• Margin at 18.4% versus 18.2% (Estimate: 14.2%).

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%.