Mahindra Q1 results: Net profit rises 98%, revenue jumps 23%
While Mahindra has been at the second position in the SUV segment in volume terms for four consecutive quarters now, it has been leading the revenue market share for six straight quarters.
By Varun Singh: Homegrown auto major Mahindra & Mahindra today reported a growth of 98% year-on-year (y-o-y) in standalone net profit at Rs 2,774 crore for the quarter ended June 2023 owing to handsome volumes in both auto and farm sectors.
The revenue from operations of the XUV700-maker jumped 23% y-o-y at Rs 24,368 crore in Q1 FY24. While the Ebitda (earnings before interest, taxes, depreciation and amortization) rose 46% y-o-y at Rs 3,547 crore, the operating margin improved by 234 basis points y-o-y at 14.56%.
| Category | Q1 FY24 | Q1 FY23 | Growth (y-o-y) |
| Revenue from operations | Rs 24,368 cr | Rs 19,813 cr | 23% |
| Ebitda | Rs 3,547 cr | Rs 2,422 cr | 46% |
| Ebitda margin | 14.56% | 12.22% | 234 bps |
| Profit after tax | Rs 2,774 cr | Rs 1,404 cr | 98% |
Source - BSE/Company
In the auto segment, the combined volumes, including those of passenger vehicles (PVs), commercial vehicles (CVs), three-wheelers and exports, increased 21% at 1,86,138 units in Q1 FY24 from 1,53,462 units in Q1 FY23.
In the June quarter, Mahindra recorded SUV volumes of 1,00,162 units. While the company has been at the second position in the SUV segment in volume terms for four consecutive quarters now, it has been leading the revenue market share for six straight quarters.
Mahindra sells popular SUVs like the Scorpio-N, Scorpio-Classic, XUV700, Thar, XUV300, Bolero and Bolero Neo.
Although the tractor volumes declined 3% at 1,14,293 units in the April-June 2023 period from 1,17,413 units in the year-ago period, these were the second highest-ever during a quarter. In the farm equipment sector, the company led the way with a market share of 42.9% in the June quarter.
Mahindra offers tractors under the Jivo, XP Plus, SP Plus, Yuvo and Novo brands.
"During Q1, our businesses across auto, farm and services delivered a strong performance. Auto led the way by strengthening its market leadership position and doubling its operating profit. Farm continues to increase market share quarter on quarter and deliver double-digit profit improvements," said Anish Shah, Managing Director and CEO, Mahindra.
Mahindra Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said: "Our endeavour to deliver innovative product offerings with strong execution has enabled a strong overall performance."
"In SUVs, we continue to be leaders in revenue market share for the sixth consecutive quarter with SUV volume crossing the 1,00,000 milestone. In the tractor business, we have achieved 42.9% market share, the highest since Q2 FY20. Our electric three-wheeler business continued market leadership with 65.5% market share," Jejurikar added.
Mahindra stock ended the day on the BSE at Rs 1,465.05 apiece, down 0.22% over the previous close.
