Mumbai: Mahindra & Mahindra Ltd. MD and CEO Anish Shah, ED, CEO (Auto and Farm Sector), Rajesh Jejurikar and Group CFO Manoj Bhat, addresses through the launch of the corporate’s Q1 FY2024 monetary outcomes, at Mahindra Towers in Mumbai, Friday, Aug 4, 2023. (PTI Photo) (PTI08_04_2023_000192B)
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Mahindra & Mahindra Ltd. (M&M) reported first quarter consolidated net profit grew 60% to ₹3,508 crore as in contrast with ₹2,196 crore a 12 months earlier due to a ‘stellar’ present by its Auto, Financial Services and Farm tools divisions.
“Operating leverage drove improvement in profits by 2.2x in Auto, 58% in Mahindra & Mahindra Financial Service Ltd. (MMFSL) and 21% in Farm. This coupled with capital allocation actions and monetisation resulted in significant step up in Group’s profitability,” the corporate stated in a submitting.
Income from operations through the quarter at ₹33,891.63 crore grew 19% year-over-year (YoY).
During the quarter the corporate’s automotive sector reported its best-ever quarter with gross sales quantity of 186,000 models, up 21%. With bookings of SUVs at 281,000 as on August 1, 2023, the corporate stated demand for its merchandise continued to stay robust.
The Farm Equipment division reported its second-highest quarterly quantity at 114,000 models whereas MMFSL reported a 58% progress in net profit.
“During Q1, our businesses across Auto, Farm and Services delivered a strong performance,” Anish Shah, MD & CEO, M&M Ltd. stated in a press release. “Auto led the way by strengthening its market leadership position and doubling its operating profit,” he added.
“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 Tech Mahindra. With this momentum, we are well on our way to deliver scale by transforming our core businesses and a 5x challenge for growth gems,” Dr. Shah stated.
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. in a press release stated, “In SUVs, we continue to be leaders in revenue market share for the 6th consecutive quarter with SUV Volume crossing the 1 lakh milestone. In the tractor business, we have achieved 42.9% market share, highest since Q2 F20. Our E-3W business continued market leadership with 65.5% market share.”
The board at its assembly held in Mumbai has introduced the merger of Mahindra Heavy Engines Ltd., Mahindra Two Wheelers Ltd. and Trringo.com Ltd. into M&M, topic to varied approvals.
