Earnings

M&M reports Q2 net profit at Rs 162 crore; revenue rises 6% YoY

Updated : November 10, 2020 02:04 PM IST

The company reported a one-time loss of Rs 1,149.5 crore.

Revenue of M&M and Mahindra Vehicle Manufacturers Ltd (MVML) during Q2FY21 rose 6 percent to Rs 11,590 crore from Rs 10,935 crore, YoY.

Auto major Mahindra & Mahindra (M&M) reported a 88 percent fall in net profit for the quarter ended September 2020 to Rs 162 crore as against Rs 1,354.8 crore in the year-ago quarter.

CNBC-TV18 analysts' poll had estimated a net profit of Rs 1,075 crore.

The company reported a one-time loss of Rs 1,149.5 crore. However, profit before the exceptional item was up 28 percent to Rs 1,736.4 crore.

Revenue of M&M and Mahindra Vehicle Manufacturers Ltd (MVML) during Q2FY21 rose 6 percent to Rs 11,590 crore from Rs 10,935 crore, YoY. The company's revenue beat CNBC-TV18 analysts poll of Rs 11,113 crore.

Auto sales in the July-September 2020 period declined 21 percent to 87,332 units from 1,10,824 while tractors sales increased 31 percent to 89,597 units from 68,359 units, YoY.

Net realizations improved 9.5 percent YoY and 6.7 percent QoQ to Rs 6,25,600.

The operational performance of the company improved significantly during the quarter under review as EBITDA increased 33.5 percent to Rs 2,057 crore from Rs 1,540.8 crore while EBITDA margin expanded by 360 bps to 17.7 percent from 14.1 percent, YoY.

The automotive segment's revenue stood at Rs 11,080.89 crore against Rs 12,058.79 crore YoY. Revenue from the farm equipment segment stood at Rs 6,478.24 crore against Rs 5,369.89 crore YoY.

M&M's tractor business margin improved to 24.4 percent from 19.3 percent, YoY and auto business margin increased to 6.5 percent versus 5.7 percent, YoY.

On a consolidated basis, M&M's revenue from operations for Q2FY21 stood at Rs 23,566.75 crore as compared to Rs 23,935.93 crore YoY.

Revenue from the financial services segment was at Rs 3,018.61 crore as against Rs 2,880.12 crore, YoY. Consolidated profit for Q2FY21 came at Rs 135.56 crore against Rs 348.14 crore, YoY.

The company said in Q2F2021, the Indian tractor industry reported a growth of 41.4 percent which is the highest ever Q2 quarter growth for the tractor industry.

In Q2 F2021, the Indian tractor industry reported a growth of 41.4 percent which is the highest ever Q2 quarter growth for the tractor industry, the company said.

"Timely relaxation of the COVID lockdown restrictions for the Agricultural sector supported by healthy reservoir levels, good increase in MSP for Kharif crops and important reforms in the agri sector announced by the government focused on improving the state of agriculture in India in the mid to long term have helped tractor demand to bounce back after April 2020," the company said in a regulatory filing.

On the back of these positive factors, it is expected that tractor demand will remain robust during the upcoming festive season, it added.

At 2:00 pm, the shares of M&M were trading 0.69 percent higher at Rs 620.60 apiece on the BSE as against a 1.48 percent gain in the benchmark Sensex.

M&M reports Q2 net profit at Rs 162 crore; revenue rises 6% YoY

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