Mahindra & Mahindra (M&M) on Friday reported 34.6% on-year growth in consolidated net profit at Rs 2,676.56 crore for the quarter ended 31 December 2022, missing street estimates. In the same quarter last year, the company reported profit of Rs 1,987.44 crore. Consolidated revenue from operations, meanwhile, surged 29.7% on-year to Rs 30,620 crore in the December quarter. It was Rs 23,594 crore in the corresponding quarter of last year.
M&M Q3FY23 EBIDTA surges 41%
The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) surged 41% on-year to Rs 2,814 crore for the quarter under review. The same was at Rs 1,803 crore in the year-ago period. “We have had another robust quarter led by the robust performance of our auto division. Our farm division also reported healthy growth with increased market share. Our capital allocation actions are continuing to show results and we remain committed to our journey of growth and returns,” said Anish Shah, MD & CEO, M&M.
M&M operating margins improve
Mahindra & Mahindra’s operating margins improved 130 bps at 13% in the said quarter. The company sold 1.76 lakh vehicles in the December quarter, 45% higher than the previous year period. Meanwhile, tractor sales, which account for a bulk of M&M’s volumes jumped 14% on-year for the period under review. M&M said auto and farm segments achieved the highest-ever third-quarter volumes with the latter’s third-quarter market share at 41%.
M&M maintains top position in SUV revenue market share
M&M said it continues to maintain the top position in the SUV revenue market share at 20.6% in the third quarter. “Our operating margins improved by 130 basis points YoY led by operating efficiencies and our focus on fiscal discipline. We recorded our highest ever quarterly group revenue reflecting strong growth across businesses,” Manoj Bhat, Group Chief Financial Officer, M&M. On Friday, Mahindra and Mahindra shares were trading marginally in the red at Rs 1,371 on NSE.
“Our efforts towards creating segment-leading products and improving operational efficiencies have led to the achievement of the highest ever quarterly revenue and PBIT in Q3 F23 for Auto and Farm sectors. In SUVs, we continue to be leaders in revenue market share for the 4th consecutive quarter and have celebrated another successful launch of the XUV4OO. In the tractor business, we have achieved 41% market share, the highest Q3 market share in the last 5 years,” said Rajesh Jejurikar, Executive Director, M&M.