Indian automotive giant Mahindra and Mahindra Ltd has reported a significant 34 per cent increase in its consolidated net profit for the third quarter of the fiscal year. The company’s net profit stood at ₹2,658 crore, marking a substantial rise from ₹1,984 crore in the same quarter last year. However, including previous-year exceptional gains, the net profit dipped by 1 per cent compared to last year.
The company also reported a 13 per cent increase in profit sequentially from the previous quarter, with revenue from operations growing by 15 per cent to ₹35,218 crore. Mahindra and Mahindra Ltd noted that its SUV market share revenue was at 21 per cent and expects the segment to grow further. Additionally, the company mentioned that it will start selling its electric vehicles from its born EV platform in 2025 and faces a delay of two-four weeks in export to the US market due to the Red Sea crisis.
In terms of its farm equipment division, the company witnessed a 4.1 per cent decrease in volume year on year, citing stress in the western and southern states. However, the farm machine business saw a 30 per cent year-to-date growth.
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sector of M&M Ltd, stated, “We are seeing real stress in the western and southern States. North India markets have seen growth. Rainfall dispersion has not been good last year. The Ojha brand has products with less than 30 horsepower and has grown from 46 per cent to 53 per cent. We further expect the tractor industry to be more negative than what we anticipated.”
Despite facing challenges, Mahindra and Mahindra Ltd remains confident in its overall performance and prospects, expressing optimism for the future. The company’s Managing Director & CEO, Dr Anish Shah, highlighted solid operating performances and the journey of unlocking value in growth gems.
The company further outlined plans to build its Classic Legends brand with the received investment. The quarterly report reflects the company’s resilience amidst shifting market conditions and a commitment to growth and development. This is a significant development in the Indian automotive industry, underscoring the company’s continued growth and resilience despite challenges in the global market. Published on February 14, 2024.
By reporting a substantial increase in its net profit and outlining its plans for electric vehicles and brand development, Mahindra and Mahindra Ltd signals a path of growth and resilience, despite ongoing challenges in the market.
