Q1 Result: M&M’s consolidated net profit up more than 5x

Consolidated net profit at Mahindra & Mahindra (M&M) jumped more than five times in the June quarter from the year-ago period due to provisioning at its finance arm, Mahindra Financial Services. Additionally, strong operating performance from the auto business also drove earnings growth.

Mahindra & Mahindra’s consolidated net profit rose to Rs 2,196 crore from Rs 424 crore, while revenue grew 67 per cent to Rs 28,412 crore, from Rs 19,172 crore in the June quarter. In the first quarter of FY22, it had made a provision of Rs 2,517 crore. This impacted consolidated earnings. It reversed the provision in subsequent quarters as the business recovered from the impact of Covid.

Meanwhile, the standalone unit saw a 67 per cent year-on-year increase in its net profit due to strong sales of SUVs, commercial vehicles and tractors. Mahindra executives told a press conference that the company expects margins to improve in the coming quarters on the back of a good order book for the new models, a favorable monsoon and moderation in commodity prices.

The Mumbai-based firm’s net profit jumped to Rs 1,430 crore from Rs 857 crore in the same period last year as sales of its passenger vehicles jumped 74 per cent to 149,803 from a year ago, while it had more open bookings. Is. Over 273,000 vehicles.

Q1 Result: M&M's consolidated net profit up more than 5x

“The semiconductor crisis is largely over and it is the demand that is now driving the high wait times. This is indeed an unprecedented demand. It is the number of vehicles we have,” said Anish Shah, Group Managing Director and CEO, Mahindra & Mahindra. Quality, which is driving demand.

See also  Point Predictive launches AutoPass™, an FCRA compliant scoring solution that empowers auto lenders to decide and value loan applications based on risk of fraud and early payment default.

Mahindra said it received over 100,000 orders within 30 minutes of book opening for its Scorpio-N SUV, which has a selling price of around Rs 18,000 crore. Rajesh Jejurikar, executive director, agricultural equipment and auto sector, M&M, said at the press meet, it has a capacity to produce around 6,000 vehicles in a month.

“We have started the capacity expansion programme, but did not expect such demand. We are adding capacity to ensure that we can take advantage of all our demands.”