Indian multinational automotive manufacturing corporation, Mahindra and Mahindra on November 9 posted its earnings report for the quarter ended September 2021, wherein it reported a rise of 214 percent year-on-year in profit at Rs 1,929 crore.
The earnings of Mahindra Vehicle Manufacturers Limited, its commercial vehicle segment is also included in the result.
In the second quarter of the current fiscal, profit had to suffer impairment losses.
“Commodity prices have impacted our margins in both the auto and farm business but our focus on cost management and optimisation has helped mitigate some of the impacts,” Group Chief Financial Officer Manoj Bhat said.
Revenue from operations increased by 14.8 percent YOY to Rs 13,305 crore, surpassing CNBC-TV18 poll estimates of Rs 12,348 crore for the reporting quarter.
“We have a very healthy booking pipeline and buoyant demand for the company’s products in the automotive segment. The global shortage of semiconductors has impacted the production and sales for another quarter,” M&M said.
In the Farm equipment division, the company said, “farm business delivered an excellent performance with second-highest Q2 in terms of PBIT (profit before interest and tax), domestic volumes, and export volumes. We have a healthy growth of 1.9 percent in market share for M&M.”
In the automobile business, Mahindra & Mahindra reported a sales of 99,334 vehicles in the quarter ended, up 9 percent YoY but tractor sales saw a decline of 5 percent YoY to Rs 88,920 crore.
Executive Director Rajesh Jejurikar said that with the availability of semiconductors, the company hopes to maintain a volume growth momentum from Q3 thereon.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 19.3 percent YOY to Rs 1,660 crore and the margin plummeted 530 bps YoY to 12.5 percent in the reporting quarter, mainly due to higher input prices.
The stock was trading at Rs 920.40 on the NSE, up 3.17 percent at 1432 hrs IST.