Mahindra & Mahindra Ltd.’s quarterly net profit rose, led by higher tractor sales and improved demand for passenger vehicles. Still, the earnings missed estimates.
The company’s net profit rose 11% sequentially to Rs 1,430 crore in the quarter ended June, according to an exchange filing. Year-on-year, it jumped 67%.
That compares with the Rs 1,540-crore consensus forecast of analysts tracked by Bloomberg.
M&M Q1 FY23 Highlights (QoQ):
Revenue rose 15% to Rs 19,613 crore, compared with the Rs 19,926-crore estimate.
Operating profit rose 20% to Rs 2,341 crore, compared with the estimate of Rs 2,461 crore.
Operating margin stood at 11.9% against 11.4% in the preceding three months and the estimated 12.4%.
The company’s passenger vehicle sales jumped 77% year-on-year to 75,420 units in April-June, while tractor sales rose 19% to 1,18,509 units. Sequentially, tractor sales jumped 63%, and passenger vehicle sales remained flat.
While the revenue in the auto segment grew 2% over the preceding three months, the sales in farm equipment segment climbed 55% during the same period.
“We recorded our highest quarterly revenue for auto and farm segments and delivered robust operational and financial performance in Q1 FY23,” Rajesh Jejurikar, executive director at M&M, said in a statement. With over 2,73,000 bookings, the demand for the automotive product portfolio remains strong, he added.
Shares of M&M were trading 1.1% lower after the results were announced compared with a 0.2% gain in the benchmark Nifty 50.
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