SUVs drive up M&M Q2 net profit by 25%

NEW DELHI: Mahindra & Mahindra’s consolidated net profit rose 25% to Rs 4,588 crore in the Sept quarter, as strong growth in its automobile business offset a decline in farm earnings. Revenue increased 25% to Rs 57,553 crore.Mahindra’s auto business reported a 55% increase in consolidated profit to Rs 2,388 crore, with revenue rising 39% to Rs 37,756 crore. Quarterly vehicle volumes, including its electric mobility subsidiaries, grew 26% to 3.31 lakh units. Utility vehicle volumes stood at 1.83 lakh. Mahindra held a 24.3% revenue share of the SUV market and a 30.1% share in electric SUVs.However, commodity costs weighed on margins. Standalone auto operating margin, excluding the eSUV contract manufacturing adjustment, fell 120 basis points year-on-year to 9.1%.