Record quarterly volumes drives Mahindra & Mahindra Q3 net profit by 14% to Rs 1528 crore

Led by sustained demand and increase in output on improved parts supplies, Mahindra & Mahindra posted 14% increase in standalone net profit for December ending third quarter of FY-23.

Mahindra & Mahindra posted a standalone net profit of Rs 1528 crore in Q3 of FY-23 versus Rs 1335 crore net profit posted by the company in the same quarter in the previous financial year.

The profit after tax could have been higher if one were to exclude the non reccuring impairment charge of Rs 630 crore taken on Mahindra Trucks and Buses during this quarter. 

Led by the highest ever quarterly volumes in the automotive and tractor business the Q3 revenues grew by 41% to Rs 21,654 crore. The company stated that the operating margin grew 130 basis points to 13% for the quarter. The margins in the automotive business have in fact increased by over 300 basis points during the quarter.

Reviewing the quarter, Anish Shah, CEO of Mahindra & Mahindra said, “We have had another robust quarter led by the robust performance of the automotive division. Our farm division also reported healthy growth with increased market share. Our capital allocation actions are continuing to show results and we remain committed to our journey of growth and returns.”  

The company claims it continues to remain the number 1 SUV maker in terms of revenues market share in Q3 FY-23 and the open bookings at the company stood at 2.66 lakh units reflecting the sustained demand for its models in the marketplace. This booking number is despite the increase in production and deliveries, claimed the company. 

Even on the EV front, the newly launched XUV 400 has already received over 15000 bookings within 13 days.

Mahindra & Mahindra posted a 45% increase in volumes in its automotive business to 1.76 lakh units and the tractor sales grew 14% to 1.04 lakh units during the third quarter. For the nine months period, the automotive volumes have breached half a million units growing over 64%, whereas the tractor sales is 13% higher to 3.14 lakh units.

Rajesh Jejurikar, ED, Mahindra & Mahindra said, “Our efforts towards creating segment leading products and improving operational efficiencies have led to achievements of highest ever quarterly revenue and PBIT in Q3 for Auto and farm of over Rs 2000 crore. We continue to be the leaders in the revenue market share for the 4th consecutive quarter. In the tractor business, we have achieved a market share of 41%, highest share in Q3 in 5 years.”

The company expects over 10% growth in the tractor business for the current financial year and the demand has been much better than the expectations, led by government spending and terms of trade of farmers have improved, which has fuelled the positive sentiment and hence a higher growth, claimed Jejurikar.

During the quarter, the company registered 140 basis points increase in market share in the tractor segment. During the quarter the company also posted its highest ever three wheeler volumes.