M&M Q3 profit rises 14% to Rs 1,528 crore; margin at 13%

Mahindra & Mahindra (M&M) on Friday reported a 52 per cent year-on-year (YoY) rise in net profit at Rs 2,029 crore in the December quarter compared with Rs 1,335 crore in the same quarter last year. After factoring in exceptional items, profit was up 14 per cent at Rs 1,528 crore, the automaker said.

Revenue for the quarter rose 41 per cent YoY to Rs 21,654 crore compared with Rs 15,349 crore in the same quarter last year. Ebitda was up 56 per cent at Rs 2,814 crore against Rs 1,803 crore in the year-ago quarter.

M&M's operating margin for the quarter came in at 13 per cent, up 130 bps YoY. Vehicle sales were up 45 per cent YoY. The company said its operating margins for the quarter improved due to operating efficiencies and focus on fiscal discipline. 

In SUVs, M&M said it continued to be leaders in revenue market share for the fourth consecutive quarter and that the launch of XUV4OO was successful. In the tractor business, it achieved 41 per cent market share, its highest Q3 market share in last five years. The auto and farm segment recorded highest ever quarterly revenue and PBIT in the December quarter. The automaker said it recorded its highest ever quarterly group revenue, reflecting strong growth across businesses. 

Managing Director & CEO Anish Shah said: “We have had another robust quarter led by the robust performance of our Auto division. Our farm division also reported healthy growth with increased market share. Our capital allocation actions are continuing to show results and we remain committed to our journey of growth and returns.

Also read: Adani Enterprises shares at Rs 645? Check out Devina Mehra's take on fair value of Adani group stock

Also read: Rs 282 to Rs 737: This defence sector stock has more than doubled in six months