Backed by rising sales, Mahindra & Mahindra Ltd. (M&M), along with its wholly-owned subsidiary Mahindra Vehicles Manufacturers Ltd. (MVML), has reported a 67% growth in consolidated net profit to ₹1,257 crore.
Revenue and other income grew 23% to ₹13,551 crore. Standalone net profit rose to 63% ₹1,221 crore. Standalone revenue and other income increased 10% to 13,785 crore.
In the quarter ended June, the total domestic automotive volume grew 16.2%. The heavy commercica vehicle volumes grew 123.4% resulting in a market share of 5.7%.
The company exported 9,360 vehicles in the quarter, a growth of 100.2% over a year earlier.
Domestic tractor sales grew 18.8% in the quarter and the Farm Equipment Segment revenue and results crossed ₹5,000 crore and ₹1,000 crore respectively. “The result is an outcome of good monsoon resulting in more sales of our vehicles. Increased spending on infrastructure also helped as well as affordable auto finance,” M&M MD Pawan Goenka said. “Industry forecast on tractor growth has been revised to 13-15% while on PVs, it remains at 15%,” he said.
Plant expansion
“Gromax brand has done extremely well as it has doubled in volume since launch. Mahindra expects to get 2-3% market share from Gromax in the future,” he said. M&M was working on a second level of expansion for its Chakan plant which will raise the production to seven lakh vehicles a year, he added.
“Mahindra is entering its product introduction season and two auto launches have been planned before the festive season including Marazzo and one in January, 2019,” he said. He said in the last quarter, price increase had been passed on to the consumers which was roughly half the commodity price.
Mahindra has set a ₹15,000 crore R&D budget. Out of which ₹1,000 crore is earmarked for EVs.
