Indian automaker Mahindra & Mahindra has been on a dream run ever since the brand revised its model range. Its new SUVs like the Mahindra XUV700, Scorpio-N and Thar among others have witnessed record bookings and that's reflecting in its earnings as well. The company posted a better-than-anticipated second quarter profit after tax (PAT) at Rs. 2,090 crore which is an uptick of 46 per cent when compared to Rs. 1,433 crore recorded in the corresponding period last year.
Riding the back of its newly introduced models, Mahindra's sales soared 75 per cent at 1,74,098 units as compared to 99,334 units sold in the same period a year ago. In fact, the company's order book showed open bookings for 2,60,000 units. Revenue from operations is up by 56.5 per cent during the quarter at Rs. 20,839 crore when compared to Rs. 13,314 crore in the corresponding last year. Mahindra farm equipment sector also saw the highest second-quarter volume while the auto segment achieved the highest-ever quarterly volume.
Anish Shah, Managing Director & CEO, M&M Ltd, said, "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."
As far as H1 earnings are concerned, the company saw its PAT going up by 54 per cent at Rs. 3,520 crore in the first two quarters of FY2023, when compared to Rs. 2,290 crore recorded in the same period a year ago. In H1 FY2023, the company saw its revenue going up by 61 per cent at Rs. 40,452 crore as compared to Rs. 25,079 crore. It also recorded a healthy 75 per cent growth in SUV sales at 3,23,901 units as compared to 1,85,192 units sold in the first half of the previous fiscal year. Even its farm equipment sector posted a surge of 12 per cent selling 2,10,003 units as compared to 1,87,154 units sold in the same period last year. The company already launched the updated Mahindra XUV300 subcompact SUV and is gearing up to launch the XUV400 EV in the next quarter which in-turn should give its sales a shot in the arm.
While demand for passenger cars remains strong, Indian automakers have faced headwinds in the form of the semiconductor chip shortage and skyrocketing raw material costs. The passenger vehicle segment in India recorded almost two-fold sales growth in September this year at 3,07,389 units, which is primarily attributed to a low base last year when the auto sales were crippled by the semiconductor crisis.
Leading Indian carmakers like Maruti Suzuki and Tata Motors have posted positive results as well. While Maruti Suzuki reported a four-fold jump in its quarterly profit, Tata Motors saw its loss narrowing compared to the previous corresponding period, driven by the strong demand for its recent launches.
