Mahindra & Mahindra Q2 net profit jumps
Shares of Mahindra & Mahindra (M&M), the maker of sports utility vehicle, gained nearly 3% on Wednesday, a day after the auto major’s quarterly revenue beat Street estimates.
M&M shares rose as much as 2.9% to Rs 918.9 on BSE in early deals.
On Tuesday, Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) posted a net profit of Rs 1,929 crore for the quarter ended September, up more than three times on a year-on-year basis. They reported revenue of Rs 13,305 crore for the three-month period, up 14.8% on a year-on-year basis.
In Q2FY21, profit was hit by impairment losses.
Farm equipment business delivered an excellent performance with second-highest Q2 in terms of PBIT (profit before interest and tax), domestic volumes, and export volumes. The unit witnessed a healthy growth of 1.9% in market share.
n the automobile segment, M&M sold 99,334 vehicles during the quarter, increasing 9% YoY but tractor sales fell 5% YoY to Rs 88,920 crore.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) declined 19.3% year-on-year to Rs 1,660 crore and the margin dropped 530 bps YoY to 12.5% in Q2FY22, dented by higher input prices.
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