With strong demand for XUV700, Mahindra reports eight-fold rise in Q2 profit
Auto major Mahindra on Tuesday reported more than eight-fold increase in its standalone profit after tax (PAT) for the second quarter ended September 30, 2021 at ₹1,432 crore on the back of robust sales of key products. The homegrown automaker had posted a standalone PAT of ₹162 crore in the second quarter of previous fiscal year.
The company's revenue for the second quarter rose by 15 per cent to ₹13,305 crore as compared to ₹11,590 crore in the year-ago period. It sold 99,334 vehicle units during the period under review, an increment of 9 per cent as against 91,536 units in the second quarter of last fiscal.
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Mahindra witnessed strong demand for its key automotive products including high number of bookings for the XUV700 - over 70,000 - since it was launched in August. "With better availability of semiconductors, we hope to maintain the volume growth momentum Q3 onwards," said Rajesh Jejurikar, Executive Director at Mahindra.
The company's tractor segment, however, saw a dip of 5 per cent at 88,920 units in the second quarter as against 93,246 units in the year-ago period.
On a consolidated basis, the Mahindra Group reported a PAT of ₹1,929 crore as compared with ₹615 crore in the year-ago period. Its revenue rose to ₹21,470 crore in the second quarter when compared to ₹19,227 crore in the second quarter of last fiscal. “Our strong show in the auto and farm sectors was complemented well by the improved performance in the group companies," said the company's Managing Director and CEO, Anish Shah.
Shah also noted that the company's investments in digital platforms have yielded well. “(They) present a meaningful opportunity to create and unlock value," he said. Further, Mahindra's Chief Financial Officer, Manoj Bhat, noted that though commodity prices have impacted the margins, the company's focus on cost management has helped mitigate some of the impact.