Mahindra Q2 resultsNet profit rises 67%, 17% growth in revenue

Mahindra & & Mahindra today reported a development of 66.92% year-on-year (y-o-y) in standalone net revenue at Rs 3,452 crore throughout the July-September 2023 duration on the back of the highest-ever quarterly volume signed up in the automobile section.

The shares of Mahindra ended the day on the BSE 1.86% down at Rs 1524.20 each.

The business’s profits from operations grew 16.59% y-o-y at Rs 25,773 crore in Q2 FY24. While Ebitda (incomes before interest, taxes, devaluation and amortization) leapt 24.24% y-o-y at Rs 4,397 crore, the operating margin increased by 105 basis points y-o-y at 17.06% throughout the quarter.

Standalone financials

Source – Company/BSE

In the vehicle sector, Mahindra offered 212,078 systems in Q2 FY24, a development of 18.03% y-o-y over 179,673 systems offered in the year-ago duration. This consists of domestic volume (traveler car, industrial lorry and three-wheeler) and exports.

The business continues to witness a strong need for its SUVS like the Scorpio (N and Classic), XUV700, XUV300, Thar, and Bolero (consisting of Neo) with around 286,000 open reservations as on November 1.

Mahindra had a problem in the farm sector with tractor volume taking a 3.77% y-o-y hit at 89,101 systems in Q2 FY24 from 92,590 systems in Q2 FY23.

Regardless of decreasing volume, the business’s tractor market share was 41.6%, the greatest Q2 market share in a years. Throughout the quarter, there was the worldwide launch of Oja (under the Mahindra brand name) and the intro of the brand-new XM, XT and FE series of tractors (under the Swaraj brand name).

Mahindra MD and CEO Anish Shah stated that throughout Q2, running efficiency throughout automobile, farm and services was robust. “Auto quickly grew to double its operating earnings. Farm continues to be durable regardless of difficult market conditions,” he included.

“We provided yet another robust efficiency in this quarter. We have actually kept our SUV profits market share at 19.9% while more enhancing our car standalone PBIT margins. In the tractor service, we increased our market share by 150bps on the back of interesting brand-new launches of Oja, Swaraj Target and Naya Swaraj. Our electrical three-wheeler service continued market management with 61.1% market share,” stated Rajesh Jejurikar, ED and CEO (Auto and Farm Sector), Mahindra.