Automobile maker Mahindra & Mahindra (M&M) posted better-than-expected profit in Q2 on strong demand for its passenger vehicles and farm equipment. Mahindra has reported profit after tax 2,090 crore, up 46% from 1,433 crore a year ago. Total vehicle sales rose 75% to 174,098 units compared to a year ago, while it had open bookings for over 260,000 sports utility vehicles.
According to data from Refinitiv IBES, analysts were expecting a profit of Rs 19.88 billion.
Mahindra said in a statement that the company’s farm equipment segment witnessed the highest volumes in the second quarter, while the auto segment achieved the highest ever quarterly volumes, with exports being strong for both vehicles and tractors.
While demand for passenger cars has remained strong, Indian automakers, including Mahindra, are bracing for semiconductor shortages and high raw material costs, which have disrupted the industry since the pandemic.
Passenger vehicle sales for September in India nearly doubled to 307,389 units from a year ago.
Revenue from operations grew 56.5% to Rs 208.39 billion during the quarter.
Earlier, rival Maruti Suzuki India reported a four-fold jump in quarterly profit, while Tata Motors narrowed its loss from a year ago due to strong demand.
Meanwhile, German-based Mutares has offered to acquire a controlling stake of 80% in Mahindra-owned Peugeot Motocycles, the companies said on Thursday.
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