Mahindra & Mahindra has reported profit of ₹424 crore for the first quarter ended June 2021 compared to a loss of ₹49 crore in the corresponding period last year. The company had reported a profit of ₹1,513 crore in the fourth quarter ended March 31.

The company’s consolidated net profit was impacted by Mahindra & Mahindra Financial Services Ltd’s (MMFSL) NPA provisioning of ₹2,517 crore. “MMFSL’s GNPA is expected to improve during the course of the year,” the company said.

Revenue from operations was at ₹19,171 crore compared to ₹11,969 crore in the first quarter last year. Revenue was at ₹21,770 crore in the fourth quarter of FY21.

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Anish Shah, Managing Director & CEO, M&M Ltd said, “Our focus on operational efficiency and financial discipline gives us the confidence that our core performance will continue. Our farm business delivered yet another exemplary quarter result, while our auto business showed demand recovery. Our growth gems are seeing good momentum and we will continue our stringent focus on fiscal discipline.”

M&M operating margin was at 13.9 per cent despite Covid challenges and commodity price increase.

Farm Equipment Segment (FES) revenue stood at ₹5,319 crore. The tractor industry witnessed strong demand growth (39 per cent) during the quarter. The growth in company’s volume (48 per cent) led to highest domestic market share in 8 quarters (41.8 per cent). The farm business delivered the highest ever first quarter profit before interest and taxes (PBIT) of ₹1,081 crore.

Rajesh Jejurikar, Executive Director, M&M Ltd said, “FES continued to deliver robust performance both in terms of market share and financial metrics. The demand for our key automotive products also remains strong. With upcoming launch of our most anticipated product XUV700, we plan to ride on the festive season with strong volume growth aided by rebound in Indian economy. However, commodity inflation and semi-conductor supply issues continue to be of concern.”

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Total vehicles sold aggregated to 85,858 units in Q1 FY22, up by 190 per cent from 29,619 units sold in Q1 FY21. Total tractors sold rose by 52 per cent to 99,127 units in Q1 FY22 from 65,195 units in Q1 FY21.

Manoj Bhat, Group Chief Financial Officer, M&M Ltd said, “Our capital allocation actions delivered resilient financial results, despite significant headwinds of the pandemic and high commodity price inflation.”

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