Auto and tractor manufacturer Mahindra & Mahindra Ltd. reported results for the September quarter on Thursday, November 5, which were largely in-line with the street expectations.
Net profit for the period on a standalone basis stood at ₹5,101 crore. A CNBC-TV18 poll was working with a figure of ₹4,757 crore. On a year-on-year basis, net profit for M&M grew by 12.8%.
Revenue for the quarter grew by 27.1% on a year-on-year basis to ₹42,477 crore, marginally higher than the CNBC-TV18 poll of ₹42,110 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained largely flat, growing 2.2% and coming in at ₹4,913 crore. A CNBC-TV18 poll was working with a figure of ₹4,905 crore.
EBITDA margin narrowed by 260 basis points to 11.6% compared to 14.4% last year, and turned out to be in-line with the CNBC-TV18 poll estimate of 11.6%.
M&M’s automotive segment revenue grew by 36.1% from last year to ₹33,936 crore from ₹24,929 crore, while the Farm Equipment business revenue saw growth of 0.6% from last year to ₹8,594 crore, contrary to expectations of a 5% year-on-year decline.
During the quarter, M&M’s auto volumes increased by 27% from last year and 9% on a sequential basis. Tractor volumes were down 6% from last year and 27% sequentially.
On a consolidated basis, Mahindra & Mahindra’s revenue and profit both grew by 25% each on a year-on-year basis to ₹57,553 crore, and ₹4,588 crore respectively.
M&M’s Auto business delivered a strong performance with 26% SUV volume growth and the EV product range also continues to show momentum. Consolidated PBIT margin for the auto segment grew to 8.8%, up by 110 basis points on a sequential basis. The Farm equipment business consolidated PBIT margin grew 20 basis points sequentially, despite a significant hike in commodity prices.
Shares of Mahindra & Mahindra are trading 4.7% higher on Thursday, cooling off slightly from the day’s high after the results announcement at ₹3,091.6. The stock is still down 18% so far this year.
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