M&M Q2 PAT jumps 46% YoY to Rs 2,090 cr

Mahindra & Mahindra's (M&M) standalone net profit surged 45.8% to Rs 2,089.92 crore on 56.52% jump in revenue from operations to Rs 20,839.27 crore in Q2 FY23 over Q2 FY22.

Profit before exceptional items stood at Rs 2,982.99 crore in Q2 FY23, registering a growth of Rs 39.18% from Rs 2,143.22 crore recorded in the corresponding quarter previous year. Exceptional items were at Rs 247.86 crore in Q2 FY23. The company said that the exceptional items represent impairment provision (net) for longterm investments and gain on sale of certain investments.

EBITDA soared 50% to Rs 2,496 crore in Q2 FY23 from Rs 1,661 crore posted in Q2 FY22. EBITDA margin was at 12% in Q2 FY23 as compared to 12.5% recorded in the same period last year.

M&M sold 1,74,098 vehicles in Q2 FY23, recording a growth of 75% as against 99,334 vehicles sold in the same quarter a year ago. Total tractors sold in Q2 FY23 stood at 92,590 units, rising 5% year on year.

The company's revenue from the Auto segment was Rs 14,724.97 crore (up 85.99% YoY), Farm Equipment Sector (FES) revenue was Rs 5,538.13 crore (up 12.95% YoY) in Q2 FY23.

On consolidated basis, the vehicle manufacturer reported 44% jump in net profit to Rs 2,773 crore on 39% rise in revenue from operations to Rs 29,870 crore in Q2 FY23 over Q2 FY22.

Dr. Anish Shah, managing director & CEO, M&M, said, Our robust financial results reflect the progress we have made on our strategic imperatives. While the auto segment has led growth, we have seen steady performance across our group companies. Our journey of creating value and providing growth capital continued through the Susten-OTPP transaction and the BII transaction.

Rajesh Jejurikar, executive director, M&M, said, It has been an action-packed quarter with multiple product launches and new products across segments, in addition to partnership announcements with BII and Volkswagen. We recorded our highest quarterly revenue for Auto and Farm segments. In SUVs, we continue to be the Revenue market share leader. Festive sales have been strong this year across Auto and Farm sectors. With the unveil of the XUV4OO and our Born Electric Vision, we enter the Electric SUV segment and aim to establish leadership position in the future.

Manoj Bhat, Group chief financial officer, M&M, said, Our strong revenue growth coupled with the focus on operational metrics and cost management have enabled us to record our highest standalone profits ever.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

Shares of Mahindra & Mahindra shed 0.30% to Rs 1,294 on the BSE.

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