Jeeto Minivan. Photo: Twitter
Volume growth in the high-margin utility vehicles space and robust expansion in sales of tractors on good monsoons helped Mahindra & Mahindra reported a 22 per cent growth in consolidated profit for the second quarter (including for Mahindra Vehicle Manufacturers Ltd). Profit for the quarter stood at Rs 1,411 crore.
M&M’s revenue grew 17 per cent to Rs 12,573 crore. The company announced a 1:1 bonus share for shareholders. The firm’s stock closed at Rs 1,393.40 at the BSE, up 2.34 per cent from the previous close. “Our volumes witnessed a growth of 7 per cent in the first two months of the quarter, while in September our sales were up by 13 per cent,” said Pawan Goenka, managing director. During the quarter, M&M sold 1,29,754 vehicles. Tractor sales were at 76,984 units and total exports were at 11,755 units.
The company said the growth momentum was likely to witness a cyclical bounce-back once the effects of some of the recent transient factors fade away and the economy adjusts to the new tax regime. Inventory restocking, a normal monsoon and the effect of past interest rate cuts would continue to provide a fillip to growth going forward, the company said.