M&M reports 57% jump in Q3 net profit at ₹1,987 cr; shares rise
Premium- M&M Q3 results: Revenue from operation increased 9% to ₹23,594 crore for the thrid quarter
Auto major Mahindra and Mahindra Ltd (M&M) reported a 57% surge in third-quarter profit on Thursday, boosted by higher demand for the automaker's commercial vehicles and farm equipment that offset an increase in costs due to supply chain disruptions.
Consolidated net profit from continuing operations was ₹1,987 crore rupees ($265.11 million) for the quarter ended Dec. 31, up from 1,268 crore rupees a year ago.
On Thursday, M&M shares rose 0.11% in noon deals at ₹841 apiece on NSE.
Revenue from operation increased 9% to ₹23,594 crore for the thrid quarter as against ₹21,626 crore in corresponding quarter of last year.
“We have seen improved performance across multiple businesses as reflected in our consolidated performance. Our Auto business has done well despite supply side challenges while our Farm business has shown market share increase despite a slowdown in the market," said M&M MD and CEO Anish Shah.
On a standalone basis, M&M's net profit rose over two-fold at ₹1,353 crore for the December quarter.
The company said commodity inflation, shortage of semi-conductors has impacted the operating margin which stands at 11.9%.
Mahindra said there is continued growth in exports both for auto and farm and the quarter saw improved group company performances at Mahindra Finance and Mahindra Lifespaces.
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Meanwhile, the volumes in terms of total vehicles sold during the quarter fell 2% to 1,18,174, while the tractor volumes declined 9% to 91,769.
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