Mahindra & Mahindra Quarterly Results: Q1FY22 profit jumps 23 times YoY on back of improved sales; stock up 2%
The auto major - Mahindra and Mahindra Ltd on Friday reported a standalone operating PAT (profit after tax) at Rs 934 crores, up 23 times year-on-year in the first quarter of the financial year 2021-22 on Friday, as demand for the Indian automaker`s passenger vehicles and tractors improved.
The auto major — Mahindra and Mahindra Ltd on Friday reported a standalone operating PAT (profit after tax) at Rs 934 crores, up 23 times year-on-year in the first quarter of the financial year 2021-22 on Friday, as demand for the Indian automaker`s passenger vehicles and tractors improved.
The company said it sold 85,858 vehicles during the quarter, up 190 per cent, while its tractor sales jumped 52 per cent from a year-ago quarter, when the first wave of the COVID-19 pandemic triggered a nationwide lockdown.
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M&M in its filing to exchange said, “Consolidated PAT at Rs 424 crores impacted by MMFSL NPA provisioning of Rs 2,517 crores; MMFSL GNPA expected to improve during the course of the year.”
The company in the same quarter a year ago had posted a consolidated loss of Rs 97.62 crores.
In its filing it further said, the company has seen a recovery compared with last year, but they remain under pressure due to rising commodity prices, a global shortage of semiconductors, and uncertainty due to the pandemic.
"Commodity inflation and semiconductor supply issues continue to be of concern," the company said in an exchange filing.
Farm Equipment Sector (FES) delivers highest-ever first-quarter PBIT (Profit before income tax) of Rs 1,081 crores, with a jump in market share around 42 per cent, highest in last 8 quarters, it also said.
The company`s loss in the first quarter last year was at a time when the Indian auto sector — already impacted by a bruising slowdown in demand — was hit by pandemic-related restrictions.
Last week, rival Tata Motors warned that a shortage of semiconductors, rising costs of raw materials, and the pandemic-related uncertainty will have an impact on business in the short term.
Mahindra`s revenue from the auto sector surged more than 190 per cent during the quarter and it said the auto business was continuing to see a strong booking pipeline.
The shares of M&M jumped around 2 per cent to Rs 772 per share on the BSE intraday trade, immediate after Q1 results, as compared to a quarter per cent decline in the S&P BSE Sensex.
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