Home-grown automaker Mahindra & Mahindra on Friday reported a net profit of INR 424 crore in Q1 FY 21, in contrast to a net loss of INR 49 crore in the same quarter last year.
In a statement to BSE, the company said that net profit was impacted by Mahindra & Mahindra Financial Services’ (MMFS) NPA provisioning of INR 2,517 crore; its GNPA is expected to improve during the course of the year.
In terms of revenue, the company recorded a 60% rise at INR 1,9171 crore compared to INR 11,969 crore in the same quarter last year.
Anish Shah, Managing Director & CEO, M&M, said, “Our focus on operational efficiency and financial discipline gives us the confidence that our core performance will continue. Our farm business delivered yet another exemplary quarter result, while our auto business showed demand recovery. Our growth gems are seeing good momentum, and we will continue our stringent focus on fiscal discipline.”
Out of the total revenue, the farm equipment segment contributed INR 5,319 crore, while the automotive segment contributed INR 6,050 crore during the first quarter of the ongoing fiscal year.
The tractor industry witnessed strong demand growth (39%) during the quarter. The growth in company’s volume (48%) led to the highest domestic market share in eight quarters (41.8%).
The farm business delivered an excellent performance with the highest ever first-quarter PBIT and ROCE, the company said in a statement to BSE.
Rajesh Jejurikar, Executive Director, M&M, said, “We have embarked on the journey of bold, aggressive growth with a good start in Q1 FY22. FES continued to deliver robust performance both in terms of market share and financial metrics. “The demand for our key automotive products also remains strong. However, commodity inflation and semiconductor supply issues continue to be of concern,” he added.