The company posted Rs 2196 crore PAT in the corresponding quarter a year ago. During the quarter under review, the company registered the highest automotive sales at 186,000 units, up 21% year-on-year.
04 Aug 2023 | 4868 Views | By Autocar Professional Bureau
Automotive major Mahindra & Mahindra (M&M) reported a 60% jump in its consolidated profit after tax (PAT) at Rs 3508 crore for the quarter ended June 2023 (Q1 FY24).
The company posted Rs 2196 crore PAT in the corresponding quarter a year ago.
During the quarter under review, ...
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Automotive major Mahindra & Mahindra (M&M) reported a 60% jump in its consolidated profit after tax (PAT) at Rs 3508 crore for the quarter ended June 2023 (Q1 FY24).
The company posted Rs 2196 crore PAT in the corresponding quarter a year ago.
During the quarter under review, the company registered the highest automotive sales at 186,000 units, up 21% year-on-year.
According to the company, operating leverage drove improvement in profits by 2.2x in Auto, 58% in Mahindra & Mahindra Financial Services Limited (MMFSL), and 21% in Farm. This coupled with capital allocation actions and monetisation’s resulted in a significant step up in Group’s profitability, M&M said in an official release.
Anish Shah, Managing Director and CEO, M&M said, “During Q1, our businesses across Auto, Farm and Services delivered a strong performance. Auto led the way by strengthening its market leadership position and doubling its operating profit. Farm continues to increase market share quarter on quarter and deliver double-digit profit improvements. In Services, MMFSL is on track to realise its full potential and transformation is underway at TechM. With this momentum, we are well on our way to Deliver Scale by transforming our core businesses and a 5x challenge for growth gems.”
Meanwhile, the company clocked a consolidated revenue of Rs 33892 crore in Q1FY24, up 19%, as compared to Rs 28414 crore in the year-ago quarter.
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), M&M said, “Our endeavour to deliver innovative product offerings with strong execution has enabled a strong overall performance. In SUVs, we continue to be leaders in revenue market share for the 6th consecutive quarter with SUV Volume crossing the 1L milestone. In the tractor business, we have achieved 42.9% market share, the highest since Q2 F20. Our E-3W business continued market leadership with 65.5% market share.”
The company registered its highest SUV revenue market share for six consecutive quarters with Q1 share at 20.2%, up 310 basis points. As of 1 August, 2023, the company has open bookings of SUVs at 281,000, reflecting continued strong automotive demand.
Similarly, in sub 3.5 tonne category of light commercial vehicles (LCVs),M&M is now the largest player with 49.1% market share, up 480bps, the highest in the last five years.
The company's ROE stood at 24.2% in Q1FY24, higher than the committed level of 18%.
Manoj Bhat, Group Chief Financial Officer, M&M said, “Our consolidated results reflect the robust performance of our multiple businesses. We have also realised the benefits of value creation through our capital allocation actions. Our market leadership position in our Automotive and Farm businesses has helped us realise operating margin benefits.”
In the farm equipment segment, the company reported the highest ever quarterly volume at 114,000 in Q1 FY24. Its farm machinery revenue stood at Rs 181 crore in the June quarter, up 24% yoy. The company is now the second largest player in rotavators with an estimated market share of 23.5%.