EconomyCompanies
Mahindra & Mahindra Q2 profit rises 13% to ₹5,102 crore as revenue jumps 27%
The carmaker and tractor maker said on Thursday that SUV volumes grew 26% in the July-September quarter, and group chief Anish Shah pointed to a 25% rise in consolidated profit.
Key points
- M&M's standalone net profit rose 12.85% to ₹5,101.62 crore in the September quarter.
- Revenue from operations grew 27.1% to ₹42,477.42 crore.
- SUV volumes rose 26% from a year earlier, said Rajesh Jejurikar.
Mahindra & Mahindra on Thursday reported a 12.85% rise in standalone net profit for the July-September quarter, to ₹5,101.62 crore from ₹4,520.52 crore a year earlier, on the back of strong demand for its sport utility vehicles.
Revenue from operations grew 27.1% to ₹42,477.42 crore, a pace of growth more than twice that of profit. The results came on a day when the Sensex was in a sharp rally after the outcome of the US midterm elections and a fall in oil prices.
What the management said
Group chief executive Anish Shah pointed to 25% growth in consolidated profit after tax, a wider measure that takes in the group’s other businesses.
Rajesh Jejurikar, who runs the auto and farm businesses, said SUV volumes rose 26% from a year earlier. The consolidated profit margin of the auto business, measured before interest and tax, reached 8.8%, up 110 basis points from the previous quarter. The farm business margin rose 20 basis points over the quarter. Chief financial officer Amarjyoti Barua described the balance sheet and cash generation as robust.
The quarter follows a record October, when the company sold 73,338 SUVs in India. Its tractor sales fell that month.