Homegrown auto main Mahindra & Mahindra (M&M) on Thursday reported over two-fold enhance in its standalone revenue after tax (PAT) at Rs 1,353 crore, for the quarter ended December 31, 2021.
The Mumbai-based firm had posted a standalone PAT of Rs 531 crore within the October-December interval of earlier 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 in opposition to Rs 14,057 crore within the year-ago interval, M&M stated in a regulatory submitting.
The firm stated it bought 1,18,174 automobiles in the course of the interval beneath assessment, down 2 per cent from 1,21,133 items within the third quarter of final fiscal.
M&M tractor gross sales declined by 9 per cent to 91,769 items within the third quarter, as in opposition to 1,00,696 items within the year-ago interval.
On a consolidated foundation, the Mahindra Group reported a PAT of Rs 1,987 crore, as in comparison with Rs 1,268 crore within the Q3 of 2020-21.
Revenue rose to Rs 23,594 crore within the third quarter, as in opposition to Rs 21,626 crore within the year-ago interval.
“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 famous.
In an internet press briefing, he added that the corporate has various plans to unlock worth throughout the group.
On electrical automobiles (EVs), he famous that the corporate is already having a powerful presence within the three-wheeler phase and feels assured that the automaker would additionally be capable of take a management place within the four-wheeler phase.
Asked whether or not the corporate is taking a look at coming into the home electrical two-wheeler phase, he stated that at present the auto maker has no such plans to allocate capital for this phase.
The auto main had lately tied up with Hero Electric to collaborate on the EV entrance.
Elaborating on the auto phase, M&M Executive Director Rajesh Jejurikar stated that demand for the corporate’s whole automotive product portfolio stays robust. “The order book for XUV 700 and Thar reflects the customer and market success of these new launches,” he stated.
The open order ebook for the mannequin vary stood at over 1.55 lakh items, off which 70,000 had been for the XUV7OO, Jejurikar stated.
“With better availability of semiconductors, we hope to build the volume growth momentum in Q4 FY22 in our journey to being No 1 in core SUVs,” he famous.
Jejurikar said that the corporate’s farm tools sector (FES) gained 140 foundation factors market share year-on-year within the third quarter and delivered strong monetary metrics regardless of market slowdown and steep commodity inflation.
He famous that the corporate was taking a look at taking a worth hike however is but to calibrate the determine.
“It will be based on commodity price as well as demand momentum… We will take it at an appropriate time… We have not decided on the date yet,” Jejurikar said.
The auto main famous that it has provide you with numerous brief and medium-term measures to deal with the problem of semiconductor scarcity.
M&M Automotive Division CEO Veejay Nakra stated that new sources had been recognized and the corporate can also be creating reserve shares of important digital parts.
Besides, work can also be being executed to have appropriate substitutes for complicated multifunction circuits and the automaker can also be shopping for inventory from the open market, he stated.
Nakra famous that though the state of affairs was enhancing progressively, it will nonetheless take one other 6-9 months earlier than normalcy returned, so far as the semiconductor situation was involved.
“What I can say is that the worst is behind us… Benefits have accrued to us in February from the measures which have been taken already,” he stated.
The firm needed to incur a manufacturing lack of round 20,000 items in Q3 owing to semiconductor scarcity, Nakra stated.
M&M CFO Manoj Bhat stated the corporate’s deal with capital allocation and profitability has led to a gradual enhance in Return on fairness (RoE) over the previous few quarters.
Shares of the corporate closed 1.49 per cent up at Rs 853.10 apiece on the BSE.
