Auto giant Mahindra and Mahindra reported impressive results for the first quarter, with a remarkable 98% surge in profit, surpassing expectations. This outstanding performance was driven by robust sales of its higher-priced sport-utility vehicles (SUVs). It is the second-largest SUV manufacturer in India in terms of volume.
According to an expert at Prabhudas Lilladher “Mahindra is expected to maintain its positive momentum, supported by increased operating leverage and declining commodity prices, which will further boost profit margins”.
The first quarter profit margin before exceptional items increased to 10.4% from 7.7% compared to the previous year.
Additionally, Mahindra confirmed that its plans to launch a new range of electric SUVs are progressing as scheduled to follow their electric model SUV, the XUV400.
Talking about the funding for its EV division, its management stated that the company is not actively seeking additional funding in the electric vehicle space. The company feels that its strong business and cash flow are sufficient to support its EV initiatives without external funding.
Recently the company secured investment from Singapore’s Temasek for its EV unit – Mahindra Electric Automobile. The EV arm also has British International Investment as an investor. Mahindra has already invested 16 billion rupees ($193.23 million) in its EV arm, out of the planned 100 billion rupees by fiscal 2027.
Following the announcement of the impressive results, the company’s shares closed 0.22% lower at Rs.1465.05 on NSE.