Mahindra & Mahindra shares fall over 1.5% despite posting strong Q2 growth

Mahindra & Mahindra (M&M) has reported a robust standalone net profit of ₹3,451.88 crore in the second quarter of FY24. This marks an impressive growth of 66.9%, compared to ₹2,068 crore in the corresponding quarter of the previous fiscal year.

The automobile giant’s standalone revenue from operations for Q2FY24 witnessed a substantial increase of 15.7%, reaching ₹24,309.89 crore from ₹21,010.13 crore YoY.

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On the operational front, the earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter ending September 2023 grew by 20%, reaching ₹2,935 crore, up from ₹2,443 crore. The EBITDA margin also saw improvement, rising to 12.1% from 11.6% YoY.

Anish Shah, Managing Director & CEO, M&M Ltd, commented on the Q2 performance, highlighting the robust operating performance across Auto, Farm, and Services. The Auto segment witnessed rapid growth, doubling its operating profit, while the Farm segment remained resilient despite challenging market conditions. With a notable half-yearly PAT growth of 18%, Mahindra & Mahindra is on track to deliver scale by transforming core businesses and realizing the 5x challenge for growth gems.

As of the latest update, the shares were trading 1.78% lower at ₹1,524.50.