Mahindra & Mahindra Q2 profit rises 6% to Rs 2,348 crore

Mahindra & Mahindra (M&M) reported a 6% increase in its consolidated profit after tax (PAT) to Rs 2,348 crore for the September 2023 quarter. The Mumbai-headquartered company had posted a PAT of Rs 2,209 crore in the July-September period of the previous fiscal.

Robust Performance Across Businesses

The company's revenue grew 15% year-on-year to Rs 34,436 crore in the second quarter of this fiscal. It witnessed a robust performance across all businesses, except Tech Mahindra, which was impacted by weak demand and exits from non-core accounts.

Auto Sector Growth

In the automotive sector, the company's revenue grew 20% year-on-year to Rs 18,869 crore in the July-September quarter. Rajesh Jejurikar, M&M Executive Director and CEO Auto and Farm Sector, said, "We delivered yet another robust performance in this quarter. We have maintained our SUV revenue market share at 19.9% while further improving our auto standalone PBIT margins."

Tractor Market Growth

The company increased its market share in the tractor business by 150 basis points on the back of new launches. However, it expects the domestic tractor market growth to be flat this fiscal against an earlier estimate of a low-single-digit growth.

Tech Mahindra's Transformation Journey

Tech Mahindra had a tough quarter, impacted by weak demand and exits from non-core accounts. The company is now initiating a transformation journey in the business. Anish Shah, M&M Managing Director and CEO, said, "Tech Mahindra had a tough quarter. The company is now initiating the transformation journey in the business."

Growth Plans on Track

Despite the challenges, the company's expansion plans remain on track. Shah said, "Our focus right now is to ensure that all our businesses have the ability to grow in a significant way. Our approach is to drive significant growth."

Key Highlights

• Consolidated PAT grew by 6% to Rs 2,348 crore
• Revenue grew by 15% to Rs 34,436 crore
• Robust performance across businesses, except Tech Mahindra
• Automotive sector revenue grew by 20% to Rs 18,869 crore
• Tractor market growth expected to be flat
• Tech Mahindra initiating transformation journey
• Growth plans remain on track

Mahindra & Mahindra delivered a robust performance in the September 2023 quarter, with a 6% growth in consolidated PAT. The company witnessed strong growth across all businesses, except Tech Mahindra, which was impacted by weak demand. The company remains focused on driving significant growth and executing its expansion plans.