Mahindra & Mahindra's net profit before exceptional items surged to Rs 934 crore in Q1 FY22 from Rs 39 crore in Q1 FY21.
The company's net profit after adjusting for exceptional items was Rs 856 crore in Q1 FY22 as against Rs 68 crore in Q1 FY21.
Revenue rose by 110% to Rs 11,763 crore in Q1 FY22 from Rs 5,589 crore in Q1 FY21. EBITDA increased by 185% to Rs 1,632 crore in the first quarter from Rs 573 crore reported in the same period last year.
Total vehicles sold aggregated to 85,858 units in Q1 FY22, up by 190% from 29,619 units sold in Q1 FY21. Total tractors sold rose by 52% to 99,127 units in Q1 FY22 from 65,195 units in Q1 FY21.
The company's operating margin was at 13.9% despite COVID challenges and commodity price increases. The company continued to focus on cost optimization and operating leverage helped maintain margins.
M&M's Farm Equipment Sector (FES) delivered its highest ever first quarter profit before interest and taxes (PBIT) of Rs 1,081 crore in Q1 FY22. It recorded revenue of Rs 5,319 crore during the quarter. FES international subsidiaries record fourth successive quarter of PBIT.
The tractor industry witnessed strong demand growth (39%) during the quarter. The growth in company's volume (48%) led to highest domestic market share in 8 quarters (41.8%)
M&M's auto business continues to witness strong booking pipeline and its market share has increased as compared to Q4 FY21.
M&M's automotive segment recorded revenue of Rs 6,050 crore and PBIT of Rs 103 crore in Q1 FY22.
Dr. Anish Shah, managing director & CEO, M&M, said, Our focus on operational efficiency and financial discipline gives us the confidence that our core performance will continue. Our Farm business delivered yet another exemplary quarter result, while our auto business showed demand recovery. Our growth gems are seeing good momentum and we will continue our stringent focus on fiscal discipline.
Rajesh Jejurikar, Executive Director, M&M, said that with upcoming launch of the company's most anticipated product XUV700, it plans to ride on the festive season with strong volume growth aided by rebound in Indian economy. However, commodity inflation and semiconductor supply issues continued to be of concern.
Manoj Bhat, Group Chief Financial Officer, M&M, said, Our capital allocation actions delivered resilient financial results, despite significant headwinds of the pandemic and high commodity price inflation.
On a consolidated basis, M&M reported net profit after exceptional items from continuing operations of Rs 424 crore in Q1 FY22 as against a net loss of Rs 49 crore in Q1 FY21. Revenue rose by 60% YoY to Rs 19,172 crore during the quarter.
The company's consolidated net profit was impacted by Mahindra & Mahindra Financial Services (MMFSL) NPA provisioning of Rs 2,517 crore. MMFSL's GNPA is expected to improve during the course of the year.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
The scrip shed 0.86% to currently trade at Rs 154.95 on the BSE.
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