Mahindra & Mahindra Q1 net profit rises 67% at Rs 1,257 cr, ahead of estimates

Utility vehicle and tractor manufacturer Mahindra & Mahindra on Tuesday reported a 67 percent growth in net profit at Rs 1,257 crore for the quarter ended June, ahead of analyst estimates. This is combined profit of M&M and MVML, a manufacturing unit.

A Reuters poll of analysts had pegged the company’s bottomline to come in at Rs 1,180 crore. M&M’s net profit in the same quarter last year stood at Rs 752 crore.

The Mumbai-based maker of passenger vehicles, commercial vehicles, two and three-wheelers had clocked total automotive volume of 1,40,101 units, a growth of 20 percent, during the June quarter.

The growth was led by a resurgent demand for trucks and for three-wheelers. The maker of Scorpio, XUV500 and Bolero clocked a 9 percent growth in passenger vehicles (cars and SUVs) to 60,779 units during June quarter while commercial vehicle sales grew by 23 percent to 56,940 units.

Total tractor volumes rose by 19 percent to 1,00,784 units helped by a continued upward trend due to an expectation of a normal monsoon as well as improved buying power with the buyers with better yield.

The company’s revenues came in at Rs 13,358 crore, a growth of about 23 percent over the same period last year when it was Rs 10,877 crore. The Reuters poll had estimated revenues to come in at Rs 13,508 crore.

While the company is optimistic about consumption growth, it counts US tariffs as a risk.

"A normal monsoon, with a satisfactory temporal and spatial distribution, combined with the recently approved higher MSP for kharif crops should help support rural consumption further," said the company release.

"However, the recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions. These could pose risks to global recovery and investments."