Mahindra & Mahindra (M&M) posted 14 per cent increase in its net profit at ₹1,528 crore in the third quarter ended December 31, 2022 as against ₹1,335 crore in the corresponding quarter of the previous financial year.
Total revenue grew by 41 per cent at ₹21,654 crore (₹15,349 crore). It also posted an exceptional loss of ₹629 crore in the quarter.
Consolidated net profit incresed 35 per cent at ₹2,677 crore in the third quarter ended December 31, 2022 as against ₹1,987 crore in the corresponding quarter of the previous financial year. The total revenue grew 30 per cent at ₹30, 620 crore as against ₹23,594 crore in the same period last year.
“We have had another robust quarter led by the robust performance of our Auto and farm divisions,” Anish Shah, Managing Director & CEO, M&M told newspersons at a press conference here on Friday.
“ Our capital allocation actions are continuing to show results and we remain committed to our journey of growth and returns,” he added.
Manoj Bhat, Group Chief Financial Officer, M&M Ltd, said, operating margins improved by 130 basis points YoY led by operating efficiencies and our focus is on fiscal discipline.
“We recorded our highest ever quarterly group revenue reflecting strong growth across businesses,” Bhat added.
On the waiting period and the capacity addition, Rajesh Jejurikar, Executive Director, M&M said the capacity addition plans were on the track as announced previously.
“While we are aware of the concerns related to long waiting period, there are still some concerns in availability of semiconductors ans sensors for airbags,” he added.
In SUVs, Mahindra continues to be a leader in revenue market share for the 4th consecutive quarter. In the tractor business, it achieved 41 per cent market share, highest in any Q3 in last 5 years.
The company expects tractor demand to grow 10 per cent. “A good monsoon and mandi prices which are higher than MSP prices are enabling factors for good tractor demand,” Rajesh said.
On the general auto demand scenario, Rajesh said there is no adverse impact of inflation and increasing repo rates of RBI.
Mahindra is also seeing huge potential for EVs. ‘ About 20 to 30 per cent of our SUVs will be EVs by 2027,” he said.
The EV plant to come up as part of the ₹1,000 crore expansion at its Zaheerabad unit in Telangana would also be fast tracked and work is likely to commence in about three months.
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