Mahindra Q1 Net Jumps 67 Per Cent On Robust Sales

At its 72nd Annual General Meeting, Mahindra announced a jump of 67 per cent on robust sales for Q1 in FY2019, with a 63 per cent surge in first-quarter profit. Standalone profit after tax, which does not include share of profit from its unit Mahindra Vehicle Manufacturers, stood at Rs. 1,221 crore for the quarter ended June 30, compared with Rs. 749 crore a year earlier. Revenue from operations grew over nine per cent to Rs. 13,520 crore.

(Mahindra Furio Intermediate Commercial Vehicle)

Also Read: Mahindra Registers 13 Per Cent Sales Growth In July 2018

Mahindra said, "As you can see we have prospered along with the nation. Mahindra & Mahindra was listed on the Bombay Stock Exchange in 1956, 62 years ago. Since then the Indian GDP has grown over 1,700 times, while the Mahindra Group's revenue has grown over 9,500 times over the same period. And today it exceeds 1 lakh 33 thousand crores."

For Q1 FY2019, the Indian automotive industry (excluding two wheelers) grew 28.4 per cent with passenger vehicles growing by 19.9 per cent and the commercial vehicle industry growing by 51.5 per cent. The domestic tractor industry witnessed a growth of 23.4 per cent in Q1 FY2019. The demand for both automobiles and tractors was driven by positive sentiment in the economy (both urban and rural) due to a third consecutive year of a normal monsoon, sustained investment in road and infra projects and also the availability of affordable finance.

(Mahindra TUV300 Plus)

Also Read: Mahindra Marazzo MPV To Be Exported From India

However, for the automotive industry, the exceptionally high growth numbers are due to the low base effect. In Q1 FY2018 the industry volumes for passenger vehicles was on the lower side due to the slowdown in demand preceding the implementation of GST in July 2017 and commercial vehicle volumes being adversely impacted due to supply constraints arising from implementation of BS-IV norms.

In terms of Mahindra's standalone results of revenues and other income, the company announced a growth of Rs. 13,785 crore in the Q1 FY2019 compared to 12,580 crore from the same period last year, generating a growth of 10 per cent. Moreover, the company also announced that the profit from ordinary activities after tax stood at Rs. 1,221 crore in the Q1 FY2019 as compared to Rs. 749 crore in the same period last year, with a growth of 63 per cent.

(2018 Mahindra XUV500 Facelift)

Also Read: Mahindra Responds To FCA Allegations On Roxor

Talking about the products of the company, Mahindra said, "Our products have done extremely well with many of them recording their highest ever sales. You see of course the Scorpio and the evergreen Bolero, while you will also see pickups in which we lead the market. We've done extremely well in the HCV that is the Blazo as you know which has become very popular. We continue to dominate in the small commercial vehicle business. And as you can see there we have many more stars coming up. That's a backhoe loader in fact, which has now gained a market share of 17 per cent in 6 months of launch."

In terms of sales, Mahindra sold a total of 1.30 lakh units during the Q1 FY2019 as compared to 1.12 lakh units sold in the same period last year, registering a growth of 16 per cent, while the tractor business saw a growth of 19 per cent as the company sold 96,527 units in the Q1 FY2019 as compared to Q1 FY2018. The exports stand at 12,730 in the Q1 FY2019 as compared to 8,031 units in the same period last year, registering a growth of 59 per cent.