Mahindra & Mahindra (M&M) announced a 6% increase in its consolidated profit after tax to Rs 2,348 crore in the September quarter of 2023-24. The Mumbai-based company reported a PAT of Rs 2,209 crore in the same period last year, reflecting a positive growth trajectory for the business.
According to a statement released by M&M, the revenue also witnessed a 15% year-on-year increase, reaching Rs 34,436 crore in the second quarter of the current fiscal year. The company highlighted strong performance across all sectors, with the exception of Tech Mahindra, which faced challenges due to weak demand and non-core account exits.
M&M’s Managing Director & CEO, Anish Shah, stated, “During the second quarter, operating performance across auto, farm, and services was robust. Auto rapidly grew to double its operating profit, while the farm sector demonstrated resilience in tough market conditions.” However, Tech Mahindra struggled during the quarter, prompting the company to initiate a transformation journey for the business.
In the automotive sector, M&M reported a 20% year-on-year revenue increase to Rs 18,869 crore in the September quarter. Rajesh Jejurikar, Executive Director & CEO of the Auto and Farm Sector, added, “We delivered yet another robust performance in this quarter, maintaining our SUV revenue market share at 19.9% and improving our auto standalone PBIT margins.”
The company also saw success in the tractor business, increasing its market share by 150 basis points with the introduction of new launches such as Oja, Swaraj Target, and Naya Swaraj. In terms of volume, M&M reported a 18% growth in vehicle sales, totaling 2,12,078 units, as well as a 4% decrease in tractor sales to 89,101 units in the quarter under review.
On a standalone basis, M&M’s PAT grew by 67% to Rs 3,452 crore in the second quarter, compared to Rs 2,068 crore in the same period last year. However, shares of the company were trading 1.84% down at Rs 1,524.60 apiece on the BSE.
M&M’s financial performance indicates positive momentum for the company despite challenges in specific sectors, demonstrating resilience and strategic initiatives in the face of evolving market conditions.
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