Mahindra Q2 PAT rises 6% to Rs 2,348 crore

Mumbai: Mahindra & Mahindra (M&M) on Friday said its consolidated profit after tax grew 6 per cent to Rs 2,348 crore in the September 2023 quarter.

The Mumbai-headquartered company had posted a profit after tax (PAT) of Rs 2,209 crore in the July-September period of the last fiscal, M&M said in a statement.

The company's revenue grew 15 per cent year-on-year to Rs 34,436 crore in the second quarter of this fiscal, it added.

The company said it has witnessed a robust performance across all businesses, except Tech Mahindra, impacted by weak demand and exits from non-core accounts.

It is expecting the domestic tractor market growth to be flat this fiscal against an estimate of a low-single-digit growth earlier.

"During the second quarter, operating performance across auto, farm and services was robust. Auto rapidly grew to double its operating profit. Farm continues to be resilient despite tough market conditions," M&M Managing Director and CEO Anish Shah.

Tech Mahindra had a tough quarter. The company is now initiating the transformation journey in the business, he added.

In the automotive sector, the company said, its revenue grew 20 per cent year-on-year to Rs 18,869 crore in the July-September quarter.

"We delivered yet another robust performance in this quarter. We have maintained our SUV revenue market share at 19.9 per cent while further improving our auto standalone PBIT margins," M&M Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said at the company's post-earnings call.

In the tractor business, the company increased its market share by 150 basis points on the back of new launches of Oja, Swaraj Target and Naya Swaraj, he added.

"At this point of time, we think industry (growth) to be flat for the year and not (grow) single digit as we said earlier," Jejurikar noted.

He said that November will see growth because last year there was no festival in the said month, while Diwali this year is falling in this month.

He also said that despite this, the company's expansion plans remain on track.

"It remains on track. Normally, our investment decisions don't get impacted by short-term market," he added.

Last year, the industry was at a very high base of 9.50 lakh units, which it had reached, based on a very rapid growth of three years, starting with the Covid-19, Jejurikar noted.

"It is just the adjustment of a very high base. If it is flattish, it will be in that kind (9.50 lakh units) region," he added.

In volume terms, the company said it sold 2,12,078 vehicles in the quarter under review compared to 1,79,673 vehicles in the year-ago period, a growth of 18 per cent.

Tractor sales fell 4 per cent to 89,101 units in the quarter under review from 92,590 units a year ago.

On a standalone basis, its PAT grew by 67 per cent to Rs 3,452 crore in the second quarter over Rs 2,068 crore in the year-ago period.

Shares of the company settled 1.86 per cent lower at Rs 1,524.20 apiece on the BSE.