A man stands next to a screen displaying Mahindra's logo in New Delhi, India.
Credit; Reuters Photo
Bengaluru: Mahindra & Mahindra (M&M), on Wednesday, reported a 23 per cent jump in adjusted profit for the first quarter, helped by an increase in sales of its sport utility vehicles (SUVs) and a rebound in demand for tractors.
The company's standalone net profit rose to Rs 2,613 crore in the quarter, from the Rs 2,120 crore year-ago profit that was boosted by a gain on the sale of its stake in two units.
Including that year-ago gain, MM's profit fell 5.3 per cent year-over-year in the latest quarter.
MM's shares fell as much as 1.7 per cent immediately after the results, before reversing course to trade up 1 per cent in the afternoon session.
The company, which makes the 'Scorpio' SUV, said total revenue grew 12 per cent to Rs 2.7 lakh crore.
MM's car sales, almost entirely SUVs, jumped an industry-leading 24%, according to industry data, while tractor sales increased 5.6% in the fiscal first quarter. Tractor sales had fallen 7 per cent in fiscal 2024.
Overall, auto sales, including personal and commercial vehicles, grew 13.1 per cent, to Rs 1.89 lakh crore in the quarter, accounting for two-thirds of total revenue, the company reported.
Sales in the higher-margin farm equipment business rose 9.2 per cent, MM said.
Expenses rose by a tenth, mainly due to higher costs of raw materials such as aluminium, copper and rubber.
Maruti Suzuki India, MM's rival and the country's top carmaker by sales, will report results later in the day.