BackM&M Q1 Results: Net profit jumps 97% to ₹2,774 crore; revenue grows 23% YoY
Mahindra & Mahindra Ltd. (M&M) standalone revenue from operations during Q1FY24 jumped 23% to ₹24,368 crore from ₹19,813 crore, YoY.
PremiumMahindra & Mahindra Ltd. (M&M) on Friday reported a standalone net profit of ₹2,773.73 crore in the quarter ended June 2023, registering a sharp growth of 97.6% from ₹1,403.61 crore in the same quarter last year.
The company's standalone revenue from operations during Q1FY24 jumped 23% to ₹24,368 crore from ₹19,813 crore, YoY. Other income increased to ₹658 crore from ₹140 crore in the year-ago quarter.
Operating profit or earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter under review rose 46.5% to ₹3,547 crore from ₹2,421 core, while EBITDA margin improved to 14.6% from 12.2%, YoY.
Also Read: SBI Q1 Results: SBI net profit zooms 178% to ₹16,884 crore; NII up 24.7% YoY
M&M’s automotive business recorded an increase in EBIT margin to 7.5% from 5.3%, YoY.
The segment’s total sales volume rose 21% to 1,86,138 units during the quarter from 1,53,462 units in the corresponding quarter of last year.
Farm equipment segment margin in Q1FY24 improved to 17.5% from 15.9%, YoY. Its tractor sales during the quarter fell to 1,14,293 units from 1,17,413 units, YoY.
“In SUVs, we continue to be leaders in revenue market share for the 6th consecutive quarter with SUV Volume crossing the 1L milestone. In the tractor business, we have achieved 42.9% market share, highest since Q2 F20. Our E-3W business continued market leadership with 65.5% market share," said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.
In July, M&M had announced the acquisition of 3.53% stake in private lender RBL Bank for ₹417 crore.
In its presentation, M&M said that investment was based on a long-term view (7-10 years).
“The primary purpose is to understand banking, which will enable us to enhance the value of our financial services business. We saw an opportunity with an attractive valuation at less than 1x P/B for a very solid bank with a strong management team. We will explore potential for synergies as well," M&M said.
Read here: RBL Bank investment to help us understand banking better, says M&M CEO Anish Shah
However, the company also clarified that while it has mentioned that it may consider increasing stake to 9.9%, it does not expect to invest more unless it sees compelling strategic value at some point in the future.
Anish Shah, MD & CEO, M&M said that RBL Bank investment was to understand banking in greater detail and the company’s capital allocation discipline has not changed.
“There is no intention of going further beyond this - there is no intention to be a bank right now. We saw an opportunity with a 1x P/B, very well run bank with a good management. At this stage, we do not expect to go higher. At some point in the future, if there is a compelling strategic reason, we might look to increase stake," Shah said.
At 1:55 pm, M&M share price was trading 0.18% lower at ₹1,465.70 apiece on the BSE.
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