Mahindra & Mahindra announces 46% increase in Q2 profit

Strong demand for the Indian automaker’s passenger vehicles led to a remarkable 46 percent increase in second-quarter profit, according to Mahindra and Mahindra.

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Mahindra and Mahindra (M&M) reported a 46% increase in net profit for the second quarter of FY2023, coming in at Rs 2,090 crore as opposed to Rs 1,433 crore in the prior quarter. Revenue for the company increased by 57% to Rs 20,839 crore from Rs 13,314 crore over the same time.

“Our robust financial results reflect the progress we have made on our strategic imperatives. While the auto segment has led growth, we have seen steady performance across our group companies. Our journey of creating value and providing growth capital continued through the Susten-OTPP transaction and the BII transaction,” Dr Anish Shah, Managing Director and CEO of M&M Ltd, said.

EBITDA for the company increased 50% year over year to Rs 2,496 crore in the quarter under review from Rs 1,661 crore in the same period the previous year. Additionally, its sales volume for the quarter increased by 75% year over year to 1,74,098 units from 99,334 units. However, Q2’s operating margin decreased from Q1’s 12.47% to Q2’s 11.98%.

The automaker, based in Mumbai, claimed that these were its highest-ever standalone and consolidated quarterly toplines.

“Our strong revenue growth coupled with the focus on operational metrics and cost management have enabled us to record our highest standalone profits ever,” Manoj Bhat, Group Chief Financial Officer, M&M Ltd, said.