New Delhi, Aided by strong export volumes and robust sales, Mahindra & Mahindra (M&M) has posted a net profit of Rs 1,432 crore for Q2 FY22, an eightfold rise from Rs 162 crore in the year-ago period, as per the financial results for the quarter and half year ended 30th September 2021 declared on Tuesday.
On a consolidated basis, the Mahindra Group reported a PAT of Rs 1,929 crore as compared with Rs 615 crore in the Q2 of 2020-21.
The flagship automotive company of the Mahindra Group has clocked 15% rise in Q2 revenues at Rs 13,305 crores and 12% increase in consolidated revenues at Rs 21,470 crores as against Rs 19,227 crore in the year-ago period.
The company has seen significant all-around improvement in performance this quarter. “Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value,” said Anish Shah, Managing Director & CEO, M&M Ltd.
Mitigating some impact from the severe global semiconductor shortage that continues to plague the Indian automaker, M&M sold 99,334 vehicles during the period under review, up 9 % from 91,536 units in the second quarter of last fiscal. "We had a blockbuster XUV7OO launch witnessing bookings of more than 70,000. The demand for other key automotive products also remains strong. With better availability of semiconductors, we hope to maintain the volume growth momentum Q3 onwards," said M&M Executive Director Rajesh Jejurikar. Electric 3 wheelers volume has garnered 68% market share which is up by 318% compared to Q2 FY2021.
Mahindra and Mahindra’s surge in second-quarter profit is aided by strong export volumes. While farm exports are up 105% which is highest ever in H1, auto exports are up 86% compared to Q2 FY2021. The company’s tractor sales however declined by 5 per cent to 88,920 units in the second quarter as against 93,246 units in the year-ago period.
M&M Group Chief Financial Officer Manoj Bhat noted that commodity prices have impacted the margins in both the auto and farm business, but the company's focus on cost management and optimisation has helped mitigate some of the impact.