During the 72nd Annual General Meeting, Mahindra Group declared its unaudited financial results for the quarter that ended on June 30, 2018. The declaration was made by Anand Mahindra, Chairman, Mahindra Group, and the company posted a revenue growth of 23 percent for the first quarter of FY19 with total revenue not including any of the excise duty going up to ₹ 13,551 crore during April-June 2018. If compared, Mahindra generated sum total revenue of ₹ 11,006 crore for the time period of April-June 2017. Mahindra’s profit before tax (PBT) for the first quarter of FY19 was a total ₹ 1,830 crore of opposed to ₹ 1,130 crore during the same time last year, which is a growth of 62 per cent and ₹ 700 crore.
Mahindra said, “As you can see we have prospered along with the nation. Mahindra & Mahindra was listed on the Bombay Stock Exchange in 1956, 62 years ago. Since then the Indian GDP has grown over 1,700 times, while the Mahindra Group’s revenue has grown over 9,500 times over the same period. And today it exceeds 1 lakh 33 thousand crores.”
For Q1 FY2019, the Indian automotive industry ( which excludes two wheelers) grew 28.4 per cent with a total passenger vehicles growing by 19.9 per cent and the commercial vehicle segment growing by 51.5 per cent. The domestic tractor segment witnessed a growth of 23.4 per cent in Q1 FY2019. The demand for both automobiles and tractors was driven by positive sentiment in the economy (both urban and rural) due to a third consecutive year of a normal monsoon, sustained investment in road and infra projects and also the availability of affordable finance.
As for the automotive industry, the exceptionally high growth numbers are said to be due to the low base effect. In Q1 FY2018 the industry volumes for passenger vehicles was on the lower side due to the slowdown in demand preceding the implementation of GST in July 2017 in the country and commercial vehicle volumes being adversely impacted due to supply constraints arising from implementation of BS-IV norms.
In terms of Mahindra company’s standalone results of revenues and other income, the company announced a whopping growth of ₹ 13,785 crore in the Q1 FY2019 when compared to 12,580 crore from the same period last year, generating a growth of 10 per cent. Moreover, the company has also announced that the total profit from ordinary activities after tax stood at ₹ 1,221 crore in the Q1 FY2019 as compared to ₹ 749 crore in the same period last year, with a growth of 63 per cent.
Getting into the details about the products of the company, Mahindra said, “Our products have done extremely well with many of them recording their highest ever sales. You see of course the Scorpio and the evergreen Bolero, while you will also see pickups in which we lead the market. We’ve done extremely well in the HCV that is the Blazo as you know which has become very popular. We continue to dominate in the small commercial vehicle business. And as you can see there we have many more stars coming up. That’s a backhoe loader in fact, which has now gained a market share of 17 per cent in 6 months of launch.”
Regarding sales, Mahindra sold a whopping total of 1.30 lakh units during the Q1 FY2019 when compared to 1.12 lakh units sold in the same period last year, registering a growth of 16 per cent, while the tractor business saw a growth of 19 per cent as the company sold 96,527 units in the Q1 FY2019 as compared to Q1 FY2018. The exports stand at 12,730 in the Q1 FY2019 as compared to 8,031 units in the same period last year, registering a growth of 59 per cent.