Shares of this large-cap company jumped around 5 percent in Friday’s trading session after signing a supply agreement with Volkswagen. The shares have delivered around 35 percent returns to its investors in one year.
With a market capitalization of Rs. 2,30,214 crores, the shares of Mahindra & Mahindra Ltd started Friday’s trading session on a higher note at Rs. 1,788 compared to its previous close of Rs. 1,765.05. During the trading session, the shares hit a high of Rs. 1,843.25, gaining around 5 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 1,837 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they signed the first supply agreement with Volkswagen Group on components of Volkswagen´s MEB for Mahindra’s purpose of building an electric platform INGLO, taking a definitive step further on their joint vision for e-mobility collaboration.
Furthermore, Mahindra will be the first external partner to use the groundbreaking unified cell concept, the core element of Volkswagen’s battery strategy. The supply agreement will run over several years and will have a total volume of about 50 GWh over a lifetime.
Volkswagen Group and Mahindra aim to strengthen their e-mobility footprint in the Indian automotive market and accelerate the electrification in the region. Moreover, Mahindra plans to launch five all-electric SUVs in India based on its new, purpose-built electric platform INGLO, starting December 2024.
Volkswagen’s MEB platform and its components are used by the Group brands Volkswagen, Audi, Skoda and SEAT/CUPRA as well as external partners like Ford and Mahindra. The partnership with Mahindra is led by Volkswagen Group Technology and its platform business unit in close cooperation with Skoda Auto Volkswagen India Pvt. Ltd.
Coming onto the company’s financial statements, the revenue increased by around 3 percent from Rs. 34,346 crores during the September quarter to Rs. 35,299 crores in the December quarter. In addition, the net profits zoomed by 20 percent from Rs. 2,484 crores to Rs. 2,977 crores during the same period.
The automaker’s volumes went up by 11.1 percent YoY to 3,13,115 units in Q3FY24. While auto sales went up by 20.1 percent YoY to 2,11,443 units, the tractor volumes declined by 4 per cent from the previous year to 1,00,522 units during the last quarter.
Headquartered in Mumbai, Mahindra & Mahindra was incorporated in 1945. The company is one of the most diversified automobile companies in India with a presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors and earthmovers.
Written By Vaibhav Patil
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