M&M Q1 Results: Strong volumes aid 23% revenue growth; Stock rises despite margin contraction

Mahindra & Mahindra Ltd., (M&M), 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 (EBITDA) during the quarter stood at ₹5,150 crore, 4.6% higher compared to last year's figure of ₹4,882 crore. A CNBC-TV18 poll was working with a figure of ₹5,281 crore.

EBITDA margin for the quarter stood at 12.2%, a contraction of 210 basis points from last year's quarterly margin of 14.3%. The figure is also marginally lower than the CNBC-TV18 poll of 12.6%.

Net profit for the period grew by 6.8% from last year to ₹3,685 crore, which is marginally higher than the CNBC-TV18 poll of ₹3,757 crore.

Commodity headwinds and higher mix of electric vehicles turned out to be a drag on M&M's margins during the quarter.

This is breaking news and will be updated with more details.