Indian automaker Mahindra & Mahindra enjoys strong first quarter as COVID restrictions ease

NEW DELHI: Mahindra and Mahindra Ltd reported on Friday a sharp jump in first-quarter net profit on improved demand for the Indian automaker’s passenger vehicles and tractors.

The company, owned by Indian billionaire Anand Mahindra, said it sold 149,803 vehicles during the quarter, up 74%, while its tractor sales jumped 18% from a year ago, as restrictions related to the COVID-19 pandemic eased.

With more than 273,000 bookings, demand for the automotive product portfolio remains strong, said Rajesh Jejurikar, executive director at the Mumbai-headquartered company.

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While demand for cars has been strong, automakers say they are also seeing an easing of semiconductor shortages seen straight after the pandemic. Mahindra was hit hard by a chip shortage, curbing its supplies and leading to an order backlog last year.

The company reported a consolidated net profit of 21.96 billion rupees ($277.54 million) for the three months ended June 30, up from 4.24 billion a year earlier.

Mahindra’s revenue from operations rose 48% during the quarter to 284.12 billion rupees. Its operating margin, however, was 11.9%, or 200 basis points lower than a year ago.