Automobile maker Mahindra and Mahindra Ltd (M&M) reported a standalone net profit of Rs 1,353.07 crore, up 154.88%, for the quarter ended December 31, 2021, from Rs 530.86 crore reported in the same quarter last year. Higher demand for commercial vehicles and farm equipment boosted the strong quarterly performance.

The company’s profit before exceptional items and tax during the quarter dropped to Rs 1,644.67 crore from Rs 2,239.28 crore last year.

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Consolidated net profit from continuing operations was Rs 1,987 crore for Q3 FY22, up 57% from Rs 1,268 crore in the year-ago period. The company witnessed good operational performance for the real estate, hospitality and other unlisted businesses. It saw continued growth in exports both for automobiles as well as farm equipment. The quarter saw improved performances by group companies Mahindra Finance and Mahindra Lifespaces.

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Revenue from the quarter under review increased 9% to Rs 23,594 crore compared to Rs 21,626 crore in the corresponding quarter last year.

Revenue from operations for the reported quarter came in at Rs 15,238.82 crore, up 8.41% from Rs 14,056.54 crore in the corresponding quarter last year. EBITDA fell 24% to Rs 1,806 crore from Rs 2,386 crore during the same quarter last year.

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Net sales of XUV700 and Scorpio models rose to Rs 15,239 crore, 8% higher than Rs 14,057 crore in the same quarter last year.

Operating margins contracted to 11.9% from 17.1% year on year due to commodity inflation and shortage of semiconductors, which led to a production loss and negative impact on operating leverage.

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Mahindra suffered a production delay for 20,000 units during the quarter because of the chip shortage. The company has a booking pipeline of 155,000 units. In volume terms, overall vehicles sold during the Q3 FY22 declined over 2% to 1,18,174, whereas tractor volumes dipped 9% to 91,769.

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Mahindra & Mahindra MD and CEO Anish Shah said, “We have seen improved performance across multiple businesses as reflected in our consolidated performance. Our auto business has done well despite supply-side challenges while our farm business has shown market share increase despite a slowdown in the market”.

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On Thursday, the Mahindra and Mahindra (M&M) stock closed 1.52% higher at Rs 853 on the National Stock Exchange.