Mahindra & Mahindra: Expanding Capacity To Meet High Demands

While the auto segment has led growth, we have seen steady performance across our group companies. Our journey of creating value and providing growth capital continued through the Susten-OTPP transaction and the BII transaction.
-Dr. Anish Shah, Managing Director & CEO

Stock Data
Ticker	M&M
Exchange	NSE & BSE
Industry	Automobiles

Price Performance
Last 5 Days	5.63%
YTD	4.29%
Last 12 Months	56.52%

Business Basics

Mahindra & Mahindra Limited (NSE: M&M) is one of India’s most diverse conglomerates, with subsidiaries and group companies active in automotive, financial services, farm equipment, hospitality, and other sectors. The group operates 150+ entities on a consolidated basis and is present in over 100 countries and 22 industries. The company has become the market leader in the SUV segment and is currently India’s largest player in the domestic small commercial vehicle (LCV), CV, and passenger vehicle segments. Furthermore, it has continued to dominate the Indian tractor market for the past 39 years in a row.

Mahindra & Mahindra’s Financial Performance in Q2FY23

Mahindra & Mahindra Limited reported Revenue from Operations for Q2 FY23 of ₹29,870 Crore up from ₹21,469 Crore year on year, a growth of 39.1%. The Revenue was driven by Automotive & Farm Equipment segment which jumped by 84.7% & 11.6% respectively. The company reported a Consolidated Net Profit of ₹2,900 Crore, up 14.8% from ₹2,524 Crore in the same quarter of the previous year. The Earnings per Share is ₹24.80 for this quarter.

Mahindra & Mahindra’s Automotive Volumes At Record High

Mahindra & Mahindra reached its highest ever quarterly volumes of 1,74,000. The segment profit consequently increased four times year over year. As of November 1st, the company had 260,000 open reservations. According to the management, the overall demand momentum is still going strong. Additionally, the Scorpio-launch N’s was extremely successful. Demand for the Scorpio Classic, which is the updated version of the Scorpio, is also growing extremely quickly.

Regarding the electric division, the SUV XUV400 is prepared to begin production next month, and the company will begin taking reservations in the current month, which is January. British International Investment made a $9 billion investment in the company’s wholly owned subsidiary EV Co. With a market share of 67% for the most recent quarter, Mahindra & Mahindra maintained its dominant position in the electric three-wheeler market. Additionally, the commercial three-wheeled electric Treo Zor Grand’s launch received very positive feedback.

Mahindra & Mahindra’s Capacity Expansion For Scorpio & Thar Portfolio

The Scorpio-N has a continued momentum even without considering the exports. Current production capacity is around 10,000 per month for this model. The company’s already has a two year wait period and are still getting orders way more than the rate of production. Moreover, the Scorpio Classic’s demand is already higher than the capacity. There are few versions of Thar that will be coming out in the Q1 and the company anticipates a monthly demand of between 5,000 and 6,000. As a result, the management is preparing to increase to 39,000 from 29,000 by the end of current financial year and 49,000 by the end of FY24.