M&M Q3FY22 Results: Profit surges 155% YoY to Rs 1,353 crore

Auto Major Mahindra & Mahindra (M&M) on Thursday reported a 154.8 per cent YoY rise in the standalone net profit at Rs 1,353.07 crore for the December 2021 quarter compared with Rs 530.86 crore reported in the same quarter last year.

On the consolidated basis, the net profit from continuing operations was Rs 1,987.44 crore which was 56.70 per cent YoY higher against Rs 1,268.23 crore posted in the year-ago quarter. The profit was boosted by higher demand for the automaker's commercial vehicles and farm equipment that offset an increase in costs due to supply chain disruptions.

The company's revenue from operations on a standalone basis rose 8.4 per cent to Rs 15,238.82 crore against Rs 14,056.54 crore in the year-ago quarter. Consolidated Revenue from operation increased 9 per cent to Rs 23,594.46 crore for the third quarter as against Rs 21,625.95 crore in the corresponding quarter of last year.

It posted an EBITDA that dropped 24.3 per cent YoY to Rs 1,806 crore in the quarter under review against Rs 2,385 crore posted last year. The margin dropped to 11.9 per cent in the December 2021 quarter against 17 per cent posted in the December 2020 quarter. The company said commodity inflation, shortage of semi-conductors has impacted the operating margin.

"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," said, Dr. Anish Shah, Managing Director & CEO, M&M Ltd.

"Demand for the entire automotive product portfolio remains strong. The order book for XUV 700 and Thar reflects the customer and market success of these new launches. With better availability of semi-conductors, we hope to build the volume growth momentum in Q4F22 in our journey to being No 1 in core SUVs. FES gained 140 basis points market share YoY in Q3F22 and delivered robust financial metrics despite market slowdown and steep commodity inflation," said Mr. Rajesh Jejurikar, Executive Director, M&M Ltd.

"Our focus on capital allocation and profitability has led to a steady increase in RoE over the last few quarters. We remain committed to delivering on our growth and return objectives," said Mr. Manoj Bhat, Group Chief Financial Officer, M&M Ltd,

Segmental Performance

Automotive

• Very healthy booking pipeline and buoyant demand for Company's products.

• 155k plus total open bookings out of which 70K plus are for XUV700.

• Highest ever quarterly sales of Treo Auto and Treo Zor in the EV 3-wheeler segment.

• Stringent cost control measures have helped partially mitigate the margin impact of commodity inflation.

• Global shortage of semi-conductors / ECUs impacted production and sales for yet another quarter.

• However, supplies improved over Q2 F22 reflecting in higher volumes in Q3 F22 QoQ.

Farm Equipment

• Farm Business delivered an excellent performance with second-highest Q3 in terms of (a) PBIT (b) domestic volumes.

• Healthy growth of 14 per cent in Q3 market share for M&M.

• Code by Swaraj: A revolutionary farm machine launched on November 11, 2021, with industry-first features of (a) Adjustable Ground Clearance (b) Si-directional Driving. It can be used for weeding, spraying, earthing up for Horticulture crops; and for Harvesting of Grain crops.