Mahindra & Mahindra Ltd. (M&M) said third-quarter standalone net profit rose 155% to ₹1,353 crore from a year earlier due to improved performance.
Net sales income climbed 8% to ₹15,239 crore.
Commodity inflation and the shortage of semiconductors impacted the operating margin which stood at 11.9%. The automotive segment reported ‘healthy’ booking pipeline and ‘buoyant demand’ for its products and the farm segment delivered ‘excellent’ performance with the second-highest third quarter numbers in terms of profit before interest and tax, and domestic volumes, the company said.
“We have seen improved performance across multiple businesses as reflected in our consolidated performance,” said Anish Shah, MD and CEO. “Our auto business has done well despite supply-side challenges while our farm business has shown market share increase despite a slowdown in the market.”
Executive Director Rajesh Jejurikar said: “Demand for the entire automotive product portfolio remains strong. The order book for XUV 700 and Thar reflects the customer and market success of these new launches. With better availability of semiconductors, we hope to build the volume growth momentum in Q4 F22 in our journey to being No. 1 in core SUVs.”
The company’s focus on capital allocation and profitabilit had led to a steady increase in return on equity over the last few quarters, Group CFO Manoj Bhat pointed out. The company said its board had approved the sale of 9.24 acres of land to group entity Mahindra Lifespaces Ltd. in Kandivali, Mumbai for ₹365 crore.