Mahindra & Mahindra (M&M) reported a net profit of ₹3,451.8 crore for the second quarter of financial year 2023-24 (FY24), up 66.9% from ₹2,069.8 crore in the corresponding quarter a year ago. Revenue for the quarter grew 15.7% to ₹30,822.9 crore, from ₹26,293.4 crore in the previous year.
The company’s performance was driven by strong growth in both its automotive and farm equipment businesses. Automotive revenue grew 20.3% to ₹22,066.3 crore, while farm equipment revenue grew 10.4% to ₹8,756.6 crore.
M&M’s automotive business benefited from strong demand across all segments, including passenger cars, SUVs, and commercial vehicles. The company’s farm equipment business also performed well, with strong demand for tractors and combines.
M&M’s performance is in line with the overall growth in the Indian economy. The Indian economy grew 8.7% in the first quarter of FY24, and is expected to grow at a rate of 7.5% in the full year.
Here are some key highlights from M&M’s second quarter results:
- Net profit: ₹3,451.8 crore, up 66.9% from the previous year
- Revenue: ₹30,822.9 crore, up 15.7% from the previous year
- Automotive revenue: ₹22,066.3 crore, up 20.3% from the previous year
- Farm equipment revenue: ₹8,756.6 crore, up 10.4% from the previous year
Outlook
M&M expects to continue to grow in the coming quarters, driven by the continued recovery in the Indian economy and the growth of the Indian automotive and farm equipment sectors. The company is also investing in new products and technologies, such as electric vehicles and autonomous vehicles, to stay ahead of the competition.
Analyst Comments
Analysts were positive on M&M’s second quarter results.
“M&M’s strong performance is a reflection of the continued recovery in the Indian economy,” said Rahul Jain, an analyst at ICICI Securities. “The company is well-positioned to continue to grow in the coming quarters.”
“M&M’s investment in new products and technologies is a positive sign,” said Manish Shah, an analyst at Edelweiss Securities. “The company is staying ahead of the competition, and is well-positioned to grow in the long term.”
Conclusion
M&M’s second quarter results were strong, reflecting the continued recovery in the Indian economy. The company is well-positioned to continue to grow in the coming quarters.
Additional Details
- M&M’s automotive exports grew 30.2% to 30,772 units in the second quarter of FY24.
- The company’s electric vehicle sales grew 44.8% to 4,101 units in the second quarter of FY24.
- M&M’s board of directors has approved the issuance of ₹4,000 crore worth of non-convertible debentures (NCDs) to raise funds for general corporate purposes.
