M&M Q2 Results: Profit Beats Estimates On Higher Sales

Mahindra & Mahindra Ltd.’s profit beat analysts' estimates, led by higher sales in tractors and passenger vehicles.

The company’s consolidated net profit rose 44% to Rs 2,772.7 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 1,453.2-crore consensus forecast of analysts tracked by Bloomberg.

The SUV market leader reported the highest-ever quarterly revenue in the three months ended September.

M&M Q2 FY23 Highlights (YoY):

• Revenues rose 39% to Rs 29,870.4 crore, compared with the Rs 20,308.2-crore estimate.

• Operating profit rose 4% to Rs 2,058.3 crore, compared with the forecast of Rs 2,328 crore.

• Operating margin stood at 17% versus 22.8% last year and 11.5% estimated.

The company’s passenger vehicle sales jumped 84% year-on-year to 92,413 units due to low base of last year, when shortage of semiconductors drastically reduced production. The tractor sales rose 5.2% to 93,540 units.

“While the auto segment has led growth, we have seen steady performance across our group companies,” Anish Shah, managing director and chief executive officer of M&M, said in a statement.

According to the company’s executive Rajesh Jejurikar, M&M continues to be the revenue market-share leader in SUVs. Festive sales have been strong this year across auto and farm sectors, he said.

Shares of M&M were trading 0,4% higher after the results were announced compared with a 1.6% jump in Nifty 50