M&M Q1 Results: Strong volumes aid 23% revenue growth; Stock rises despite margin contraction
Mahindra & Mahindra reported a 23% revenue growth for the June quarter, driven by strong automotive volumes despite margin contraction. The stock rose over 3% as results largely met analyst expectations.
Why it matters
As a major automotive and tractor manufacturer, M&M's performance serves as a key indicator for the health of the Indian industrial and automotive sectors.
Mahindra & Mahindra Ltd., , the automotive and tractor giant, reported results for the June quarter on Thursday, July 30, which were mostly in-line with analyst expectations. The stock has jumped over 3% in response to the numbers.Revenue for the June quarter stood at ₹41,920 crore, implying a growth of 23% from last year's figure of ₹34,083 crore. The figure was slightly higher compared the CNBC-TV18's poll estimate of ₹41,764 crore.M&M's revenue on a standalone basis was aided by a 21% volume growth in the April-June period on a year-on-year basis. Automotive volumes during the quarter were up 23% from last year. However, both overall and automotive volumes were down 7% and 2% respectively on a sequentially.Earnings Before Interest, Tax, Depreciation and Amortisation during the quarter stood at ₹5,150 crore, 4.6% higher compared to last year's figure of ₹4,882 crore.
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