Mahindra & Mahindra (M&M) rose 1.82% to Rs 874.90 after the company's standalone net profit before exceptional items rose 29% to Rs 1,687 crore in Q2 September 2021 as against Rs 1,311 crore in Q2 September 2020.
M&M's net profit after adjusting for exceptional items surged to Rs 1,432 crore in Q2 September 2021 from Rs 162 crore in Q2 September 2020.
Revenue rose 15% to Rs 13,305 crore in Q2 September 2021 compared with Rs 11,590 crore in Q2 September 2020. EBITDA fell 19% to Rs 1,660 crore in the second quarter from Rs 2,057 crore reported in the same period last year.
During the quarter, raw material cost jumped 39.81% YoY to Rs 10,034.71 crore.
The company's total vehicles sales rose 9% to 99,334 units in Q2 September 2021 over Q2 September 2020. Its total tractor sales fell 5% to 88,920 units in Q2 September 2021 over Q2 September 2020.
M&M said its operating margin stood at 12.5% despite rising commodity prices and shortage of semi-conductors. It reported strong growth in exports both in auto and farm businesses.
M&M's automotive segment reported very healthy booking pipeline and buoyant demand for the company's products. The company said that stringent cost control measures have helped partially mitigate margin impact of commodity price increase.
The farm equipment business delivered excellent performance with second highest Q2 in terms of PBIT, domestic volumes, and export volumes. Farm Equipment Sector (FES) tractors market share stood at 40.1% up 1.9% compared to Q2 FY2021.
On a consolidated basis, the M&M Group's net profit before exceptional items rose 43% year-on-year to Rs 1,975 crore in Q2 September 2021.
The Group's net profit after adjusting for exceptional items surged 214% YoY to Rs 1,929 crore in Q2 September 2021. Revenue rose 12% to Rs 21,470 crore during the period under review.
Dr. Anish Shah, managing director & CEO, M&M said, "We have seen significant all around improvement in our performance this quarter. Our strong show in the Auto and Farm sectors was complemented well by the improved performance in the group companies. Our investments in digital platforms are doing well and present a meaningful opportunity to create and unlock value."
Rajesh Jejurikar, executive director, M&M, said, "FES continued to deliver robust performance both in terms of market share and financial metrics despite steep commodity inflation. We had a blockbuster XUV700 launch witnessing bookings of more than 70k. The demand for our other key automotive products also remains strong. With better availability of semi-conductors, we hope to maintain the volume growth momentum Q3 onwards. We are poised well to deliver very strong growth and returns through an exciting new product portfolio."
Manoj Bhat, group chief financial officer, M&M, said, "Commodity prices have impacted our margins in both the Auto and Farm business, but our focus on cost management and optimization has helped mitigate some of the impact."
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.
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