M&M Q3: Automaker Logs Net Profit Growth Of 34 Per Cent On Strong Sales

The auto major logged a consolidated profit of Rs 2,658 crore for the December quarter in FY24 against a net profit of Rs 1,984 crore in the third quarter of FY23

Automaker Mahindra & Mahindra clocked a 34 per cent jump in its consolidated profit on a year-on-year (YoY) basis in its third quarter (Q3) earnings on Wednesday. The auto major logged a consolidated profit of Rs 2,658 crore for the December quarter in the current financial year (FY24) against a net profit of Rs 1,984 crore in the third quarter of the previous fiscal year (FY23).

The firm logged a 15 per cent rise in its revenue for Q3FY24 on a YoY basis. It posted a revenue of Rs 35,299 crore for the quarter under review against its Q3 revenue of Rs 30,621 crore for FY23, reported PTI. The company credited the growth to strong sales witnessed across the verticals. 

The vehicle sales of the firm grew 20 per cent to 2,11,443 units sold in the October-December quarter in the current fiscal year, against 1,76,094 units sold in the corresponding quarter a year earlier. At the same time, the company reported a drop of 4 per cent in tractor sales to 1,00,522 units in Q3FY24, against 1,04,850 units sold in the third quarter of the preceding fiscal year. 

Anish Shah, MD and CEO, M&M, commented on the performance and said, “Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions. TechM is working through challenging operating results but I feel good that the right actions are being taken to turnaround its performance. The company continued the journey of unlocking value in its growth gems with the listing of India's largest renewable InvIT and partnerships with marquee investors.”

The firm’s standalone profit after tax climbed 11 per cent to Rs 2,454 crore in Q3FY24, against Rs 2,216 crore reported in the third quarter of FY23. Elaborating on the segment-wise results, Rajesh Jejurikar, ED and CEO (Auto and Farm Sector), M&M, noted, “We had a strong quarter for both auto and farm businesses. The company was a leader in SUVs with revenue market share of 21 per cent in the third quarter. We increased tractor market share by 80 bps to 41.8 per cent in Q3 even as the tractor industry contracted on back of last year's high base, weather vagaries and lower reservoir levels.”

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