M&M Q3 results: Net profit jumps 155% on-year to Rs 1,353 crore

Automotive major Mahindra & Mahindra (M&M) on Thursday reported a 155 per cent jump in its standalone profit at Rs 1,353 crore for the December 2021 quarter as against Rs 531 crore logged during the same quarter. 

The consolidated profit after tax (PAT) stood at Rs 1,987 crore for the December quarter, a jump of 57 per cent from Rs 1,268 crore reported in the year-ago period, aided by higher demand for M&M's commercial vehicles and farm equipment that offset an increase in costs owing to supply chain disruptions.  

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Revenue from operations for the quarter under review jumped 9 per cent to Rs 23,594 crore compared to Rs 21,626 crore in the corresponding quarter last year. 

Meanwhile, consolidated revenue came in at Rs 15,239 crore, a jump of 8 per cent as against Rs 14,057 crore clocked in the year-ago quarter. The company's EBITDA, however, fell 24 per cent to Rs 1,806 crore from Rs 2,386 crore during the same quarter 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. 

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The company added that semi-conductor shortage, commodity inflation has affected its operating margin which stands at 11.9 per cent. 

It stated that continued growth is witnessed in exports both for auto as well as farm and the quarter saw improved group company performances at Mahindra Finance and Mahindra Lifespaces. 
 
The volumes in terms of overall vehicles sold during the third quarter dipped two per cent to 1,18,174, whereas the tractor volumes fell 9 per cent to 91,769.