M&M Q2 net profit up 25% driven by strong automotive sales

Mumbai: Mahindra & Mahindra reported a 25% rise in consolidated net profit for the September quarter, lifted by the mainstay automotive business, helping offset weakness in tractor operations.

Nearly two-thirds of overall revenue came from sales of sport-utility vehicles, light commercial vehicles, pick-ups and trucks.

Contributions from other businesses also boosted growth amid a challenging operating scenario in light of the West Asia crisis and sharply higher fuel prices.


Consolidated profit after tax rose to ₹4,588 crore from ₹3,673 crore a year earlier. Total revenue from operations grew 25% to ₹57,553 crore from ₹46,106 crore.

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"There is only one word that can describe this quarter - resilience," group managing director and CEO Anish Shah said at a post-earnings press briefing Thursday. "Each business is on a strong track. There are multiple businesses that have contributed to this result, and each business has demonstrated a very high level of resilience in a tough environment."

"All of this is organic without any one-offs," said Amar Jyoti Baruah, chief financial officer of Mahindra Group, alluding to the earnings.

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The automotive business was the biggest contributor, with revenue rising 39% to ₹37,756 crore. Rajesh Jejurikar, executive director, auto and farm divisions said demand for SUVs remained strong though the company faced capacity constraints last quarter. Net profit of the standalone business (includes auto and farm business) climbed 13%, beating estimates, to ₹5,102 crore, from ₹4,521 crore a year earlier. Revenue from operations climbed 26% to ₹44,282 crore from ₹35,080 crore in the corresponding period last year. A Bloomberg poll of brokerages had forecast a standalone net profit of ₹4,528 crore on revenue of ₹41,371 crore.