M&M clocks Rs. 1,353 cr net in Q3
Homegrown auto major reported over two-fold increase in its standalone profit after tax (PAT) for the quarter ended Dece 31, 2021
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New Delhi: Homegrown auto major Mahindra & Mahindra (M&M) on Thursday reported over two-fold increase in its standalone profit after tax (PAT) at Rs 1,353 crore, for the quarter ended December 31, 2021.
The Mumbai-based company had posted a standalone PAT of Rs 531 crore in the October-December period of previous fiscal, hit by an impairment provision of Rs 1,210 crore for its bankrupt South Korean subsidiary SsangYong Motor. Revenue for the third quarter rose by 8 per cent to Rs 15,239 crore, as against Rs 14,057 crore in the year-ago period, M&M said in a regulatory filing.
The company said it sold 1,18,174 vehicles during the period under review, down 2 per cent from 1,21,133 units in the third quarter of last fiscal. M&M tractor sales declined by 9 per cent to 91,769 units in the third quarter, as against 1,00,696 units in the year-ago period. On a consolidated basis, the Mahindra Group reported a PAT of Rs 1,987 crore, as compared to Rs 1,268 crore in the Q3 of 2020-21. Revenue rose to Rs 23,594 crore in the third quarter, as against Rs 21,626 crore in the year-ago period.
"We have seen improved performance across multiple businesses as reflected in our consolidated performance. Our auto business has done well despite supply-side challenges, while our farm business has shown market share increase despite a slowdown in the market," M&M Managing Director & CEO Anish Shah noted. In an online press briefing, he added that the company has a number of plans to unlock value across the group.
On electric vehicles (EVs), he noted that the company is already having a strong presence in the three-wheeler segment and feels confident that the automaker would also be able to take a leadership position in the four-wheeler segment. Asked whether the company is looking at entering the domestic electric two-wheeler segment, he said that currently the auto maker has no such plans to allocate capital for this segment. The auto major had recently tied up with Hero Electric to collaborate on the EV front.
Elaborating on the auto segment, M&M Executive Director Rajesh Jejurikar said that demand for the company's entire automotive product portfolio remains strong. "The order book for XUV 700 and Thar reflects the customer and market success of these new launches," he said.
