Mahindra & Mahindra has reported a five-time profit jump in Q4, 2021. This comes at the back of success of Mahindra XUV700 and Thar
Mahindra & Mahindra has many popular cars in the Indian market. It has been attracting more and more customers this year. Now, the company has announced a five-fold jump in standalone profit for its fourth quarter (ending on March 31, 2022). This amounts to Rs 1,192 crore. To contextualize, Mahindra & Mahindra posted a profit of ₹245 crores for the year-ago period. This profit jump shows can be attributed to different factors but the success of new generation passenger vehicles like the Thar and XUV700 has definitely played a role in this achievement.
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Mahindra May Sales Performance
Mahindra has achieved stellar success in May 2022. Its car sales increased a whopping 236.13 percent YoY to 26,904 units. Of these, a major chunk comes from the UV sales of 26,632 units. This is clearly due to the great demand for the Mahindra XUV700 and Mahindra Thar. Both the SUVs have broken all records with the former achieving a sale of 1 lakh units in just 4 months. The waiting period for the flagship SUV extends all the way into 2024! Even the Thar commands a waiting period of several months and has beel selling like hot cakes.
Veejay Nakra, President of Mahindra’s Automotive Division was quoted as saying, “In May, we continued the growth momentum with all our brands performing well including XUV700 and Thar. We are witnessing strong bookings and have a robust pipeline. We announced the launch of Scorpio-N which is generating very high interest levels, and promises to be yet another blockbuster from Mahindra.”
According to the company statement, it has logged a standalone profit of Rs 4,935 crore (up from Rs 984 crore in the fiscal year ended March 31, 2021). The revenue grew 28% (to Rs 17,124 crores) this year compared to the March quarter of 2020-21 (Rs 13,356 crores). Much of the profit jump can be attributed to improvement in semiconductor supplies in Q4. The auto-export also saw huge growth in the last fiscal year (77% growth Y-o-Y).
Mahindra & Mahindra has revealed that it has achieved the highest ever standalone revenue for auto and farm segments at Rs 55,300 crore for FY22 (29% higher than the previous year). While the auto business delivered the highest ever quarterly UV (utility vehicle) volumes in Q4 (42% year-on-year growth), the farm equipment sector (FES) tractors market share for FY22 has reached 40% (growth of 1.8% Y-o-Y). The farm export also reached 17,500 tractors (highest in FY22 with 66% growth).
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Overall, the success of Mahindra & Mahindra is quite impressive, especially if you take into consideration the ongoing Covid pandemic, semiconductor shortages, commodity prices, and the Ukraine conflict. Alongside the auto and farm segment, the Mahindra & Mahindra has become No.1 in SUV revenue market share in Q4, and in the second half of FY22. This can be easily attributed to the great demand for Mahindra XUV700 and Thar. Of course, traditional hot-sellers like Bolero and Scorpio too have played a role in it. Overall, the demand for the automotive product portfolio remains strong, with over 170k bookings.