Mahindra & Mahindra (M&M) on Friday reported a 66.7 percent jump in its revenue at Rs 19,613 crore for the April-June period, on a year-on-year basis boosted by all-round growth but it was still short of Street estimates. The M&M stock slid into the red after the earnings announcement.
M&M's net profit for the three-month period came in at Rs 1,430 crore — a rise of 67.1 percent compared with the corresponding period a year ago, supported by growth in both automotive and farm equipment segments. The net profit was almost in line with analysts' estimates.
Analysts in a CNBC-TV18 poll had estimated Mahindra & Mahindra's net profit at Rs 1,438 crore and revenue at Rs 19,822 crore.
“Our performance this quarter is a reflection of the focus on delivering on our commitments to our stakeholders and customers. We saw good momentum
across all our group companies, led by the strong results of the auto and farm sector," said Anish Shah, Managing Director and CEO, Mahindra & Mahindra.
The auto major's EBITDA — a key measure of profitability — climbed up 43 percent to Rs 2,341 crore, according to a regulatory filing. The analysts had pegged M&M's EBITDA at Rs 2,449 crore for the three-month period.
Its EBITDA margin — a key metric that indicates a business's operating profitability — fell by 200 basis points to 11.9 percent, 40 basis points below the Street estimate.
Revenue from Mahindra's automotive unit more than doubled to Rs 12,306 crore compared with the year-ago period. M&M said it remains at the top with a market share of 17.1 percent in SUVs.
Mahindra & Mahindra's revenue from farm equipment rose 25.8 percent to Rs 6,689 crore, though the EBIT margin from the segment came down by 430 bps to 16 percent.
