M&M Q2 results: Stock gains as net profit climbs 16%; key highlights

Mahindra & Mahindra Ltd (M&M) on Tuesday reported a 16 per cent year-on-year (YoY) rise in consolidated net profit at Rs 3,673 crore for the September quarter compared with Rs 3,171 crore in the corresponding quarter last year. The auto major said its profit was up 28 per cent YoY, if one excludes one-time gain on land sale in the year-ago quarter, SML Isuzu tax impact and prior period PLI benefits. 

Consolidated sales for the quarter grew 22 per cent YoY to Rs 46,106 crore from Rs 37,924 crore in the same quarter last year. Auto and Farm segment continued to deliver on growth and margins. Financial services delivered 45 per cent growth in PAT, while keeping asset quality strong, M&M said. 

"TechM continued its journey of margin expansion with EBIT improvement of 250 bps. Our growth gems continue to make strong progress with notable commercial wins in Aero, 2x presales at Mahindra Lifespaces & double-digit revenue growth in others," it added.

Group CEO & Managing Director M&M said: "Auto and Farm sustained their leadership with consistent gains in market share and profitability. TechM is progressing well on its transformation journey. MMFSL achieved a 45 per cent PAT growth and remains committed to quality growth and digital transformation. Our Growth Gems are steadily advancing towards their ambitious goals, reinforcing our long-term value creation potential.”

Executive Director & CEO for Auto and Farm, Rajesh Jejurikar, said the strong performance of the businesses continued in Q2, reinforcing the company's leadership position, with a gain of 390 bps YoY in SUV revenue share, and 100 bps YoY in LCV (

In Tractors segment, Jejurikar said his company gained 50 bps YoY to reach 43 per cent market share. 

"Our Auto Standalone PBIT margin (excluding  eSUV contract manufacturing.) improved 80 bps to 10.3 per cent and core Tractor PBIT margins improved by 190 bps to 20.6 per cent,” he said.

Group Chief Financial Officer, Amarjyoti Barua, said, his company had a strong cash generation in the first half, delivering over Rs 10,000 crore of operating cash flow. M&M remained committed to sustainable growth and value creation, he said.