Mahindra & Mahindra reported a 30.44% year-on-year increase in total production volume to 1.24 lakh units in October, compared with 94,873 units in the corresponding month last year, according to its monthly business update. The automaker's total sales volume also rose 7.3% to 1.27 lakh units, against 1.18 lakh units in October last year. As reported by CNBC TV18, exports emerged as a key growth driver, with volumes jumping 77.5% year-on-year to 7,241 units from 4,079 units. The company also highlighted strong SUV volume growth and continued momentum in its electric vehicle portfolio during the month.
The production update follows M&M's largely in-line September quarter performance, where standalone revenue rose 27.1% year-on-year to ₹42,477 crore. According to CNBC TV18, standalone net profit increased 12.8% to ₹5,101 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹4,913 crore, up 2.2% from a year ago. EBITDA margin, however, contracted 260 basis points to 11.6%.
The automotive business continued to be a key contributor to quarterly performance, with revenue rising 36.1% year-on-year to ₹33,936 crore. As reported by CNBC TV18, revenue from the farm equipment business grew a more modest 0.6% to ₹8,594 crore. On a consolidated basis, M&M reported a 25% increase in revenue to ₹57,553 crore, while profit rose 25% to ₹4,588 crore.
Ahead of the October business update, shares of Mahindra & Mahindra closed 1.38% lower at ₹3,408.70 on the BSE on Thursday, November 12. According to CNBC TV18, the company last week approved an investment of up to ₹1,450 crore in the proposed rights issue of its listed subsidiary, SML Mahindra. The investment includes around ₹855 crore towards subscribing to its full rights entitlement and up to ₹595 crore for additional equity shares or any portion of the issue that remains unsubscribed.
