Mumbai-based auto major Mahindra & Mahindra (M&M) reports an over eight-fold increase in its standalone profit after tax (PAT) on Tuesday. Their PAT stood at Rs 1,432 crore for the second quarter ended September 30, 2021, riding on the back of robust sales. The standalone PAT for the same quarter last year stood at Rs 162 crore.
Revenue for this quarter rose by 15 per cent to Rs 13,305 crore as against Rs 11,590 crore for the same quarter a year ago, according to a regulatory filing.
The company sold 99,334 vehicles during the period under review. This is up 9 per cent from 91,536 units in the second quarter of last fiscal. M&M tractor sales however declined by 5 per cent to 88,920 units in the second quarter.
On a consolidated basis, the Mahindra Group reported a PAT of Rs 1,929 crore as compared to Rs 615 crore in Q2 of 2020-21. Revenue rose to Rs 21,470 crore in the second quarter as against Rs 19,227 crore in the year-ago period.
The surge in profit is aided by strong export volumes while mitigating some impact from the severe global semiconductor shortage that continues to plague the Indian automaker.
“We have seen significant all-around improvement in our performance this quarter. Our strong show in the auto and farm sectors was complimented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value, M&M Managing Director and CEO Anish Shah said.
Mahindra & Mahindra Group Chief Financial Officer Manoj Bhat noted that commodity prices have impacted the margins in both the auto and farm business, but the company’s focus on cost management and optimisation has helped mitigate some of the impacts.
Shares of the company rose as much as 2.6% after results, amid weakness in the broad market which was down 0.19%.
(Source – PTI News)
