Automotive manufacturer Mahindra & Mahindra posted a robust 98 per cent increase in its net profit on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Friday. The Mumbai-based manufacturer logged a net profit of Rs 2773.73 crore for the June quarter in the current financial year (FY24) against a net profit of Rs 1403.61 crore in the first quarter of the previous fiscal year (FY23).
Mahindra & Mahindra recorded a 23 per cent increase in its standalone revenue from operations for Q1FY24 on a year-to-year basis. It posted a revenue of Rs 24,368.33 crore for the current quarter against its Q1 revenue of Rs 19,813.01 crore for FY23, in its exchange filing.
The company credited the boost to a rich product mix and strong growth in its automotive segment. Managing Director & CEO, Anish Shah, noted, “During Q1, our businesses across Auto, Farm, and Services delivered a strong performance. Auto led the way by strengthening its market leadership position and doubling its operating profit. We are well on our way to Deliver Scale by transforming our core businesses and a 5x challenge for growth gems,” as quoted by Moneycontrol.
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The automotive segment reported an increase in sales by 21 per cent, with a volume of 1.86 lakh units sold in the reported quarter. The company noted this as their highest-ever Q1 volume for the segment. Tractor sales, on the other hand, dipped by 3 per cent to about 1.15 lakh units sold in the quarter.
The manufacturer exceeded market expectations. According to Moneycontrol’s poll average of five brokerages, the net profit of the company was expected to be Rs 1,865 crore, and revenue was estimated at Rs 23,457 crore. Analysts credited the increase in average selling prices and easing commodity prices as contributors to the strong performance, added the report.