NEW DELHI: Homegrown auto major Mahindra & Mahindra (M&M) on Tuesday reported an over eight-fold increase in its standalone profit after tax (PAT) at Rs 1,432 crore for the second quarter ended September 30, 2021, riding on the back of robust sales.
The Mumbai-based company had posted a standalone PAT of Rs 162 crore in the July-September period of previous fiscal. Revenue for the second quarter rose by 15 per cent to Rs 13,305 crore as against Rs 11,590 crore in the year-ago period, M&M said in a regulatory filing.
The company said it sold 99,334 vehicles during the period under review, up 9 per cent from 91,536 units in the second quarter of last fiscal. M&M tractor sales however declined by 5 per cent to 88,920 units in the second quarter as against 93,246 units in the year-ago period.
On a consolidated basis, the Mahindra Group reported a PAT of Rs 1,929 crore as compared with Rs 615 crore in the Q2 of 2020-21. Revenue rose to Rs 21,470 crore in the second quarter as against Rs 19,227 crore in the year-ago period.
"We have seen significant all around improvement in our performance this quarter. Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value," M&M Managing Director and CEO Anish Shah said.
M&M Executive Director Rajesh Jejurikar stated that the Farm Equipment Sector (FES) continued to deliver robust performance both in terms of market share and financial metrics despite steep commodity inflation. "We had a blockbuster XUV7OO launch witnessing bookings of more than 70k. The demand for our other key automotive products also remains strong. With better availability of semiconductors, we hope to maintain the volume growth momentum Q3 onwards," he added.
M&M Group Chief Financial Officer Manoj Bhat noted that commodity prices have impacted the margins in both the auto and farm business, but the company's focus on cost management and optimisation has helped mitigate some of the impact.