For the quarter ended June 30, it posted a profit of ₹3,508 crore before exceptional items on revenue of ₹33,892 crore. The net profit included a mark-to-market gain of ₹470.70 crore related to its erstwhile Korean subsidiary, SsangYong Motor Co. “It’s a resilient performance in the light of the challenges,” group managing director and CEO Anish Shah said.
Standalone net profit at the SUV and tractor maker almost doubled to ₹2,774 crore from ₹1,404 crore a year earlier. Revenue from operations increased 23% to ₹24,368.33 crore. A Bloomberg poll of analysts had estimated the company to turn in a profit of ₹1,949.60 crore on revenue of ₹23,643.80 crore.
Robust sales of vehicles, led by strong demand for SUVs, boosted the operational performance, making up for a decline in the cash-generating tractor business.
Total vehicle sales for the quarter rose 21% to 186,138 units, while tractor sales contracted 3% to 114,293 units.
Encouraged by a strong order book of SUVs and the easing of a semiconductor shortage, M&M expects the operational performance to remain strong in the coming quarters. As on August 1, the company had an open order book of 281,000 units, said Rajesh Jejurikar, executive director-auto and farm sectors.