Automotive major Mahindra & Mahindra on Thursday reported a 57 per cent surge in consolidated net profit at Rs 1,987 crore in the third quarter of the financial year 2021-22, up from Rs 1,268 crore a year ago, boosted by strong booking pipeline for its key models, higher demand for commercial vehicles and farm equipment that helped tide over an increase in costs due to supply chain disruptions.
"We have seen improved performance across multiple businesses as reflected in our consolidated performance," said Anish Shah, Managing Director & CEO, M&M, pointing out that the auto business has done well despite supply side challenges while the farm business has shown market share increase despite a slowdown in the market.
Financial results for Q3 2021-22 show revenue from operation increased 9 per cent to Rs 23,594 crore for the third quarter as against Rs 21,626 crore in the corresponding quarter of last year and on a standalone basis, M&M's net profit rose over two-fold at Rs 1,353 crore for the December quarter.
The company also saw the highest ever quarterly billing for EV 3 wheelers, up 170.2 per cent (year-on-year). Commodity inflation and global shortage of semi-conductors impacted production and sales for yet another quarter but supplies improved over Q2 F22 reflecting in higher volumes in Q3 F22 QoQ.
Rajesh Jejurikar, Executive Director, M&M, expects that with strong demand for the entire automotive product portfolio, customer and market success of new launches and better availability of semi-conductors, the company will be able to build the volume growth momentum in Q4 F22. "Stringent cost control measures have helped partially mitigate margin impact of commodity inflation," he said.
The buoyant demand for company's products reflected in 155k plus total open bookings out of which 70K plus are for XUV7OO, and highest ever quarterly sales of Treo Auto and Treo Zor in the EV 3-wheeler segment. The company also registered a strong auto export volume with 58.3 per cent growth (yoy) and 39.4 per cent increase in market share of Farm Equipment Sector (FES) Tractors in Q3 F22 which is up 1.4 per cent (yoy). The farm export volume was also the highest ever, up 77.4 per cent (year-to-date) in December.
( With inputs from ANI )
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