M&M (Mahindra & Mahindra), LIC of India, and Ashok Leyland Q2FY23 results

Results declared for M&M (Mahindra & Mahindra), LIC of India, and Ashok Leyland on 11th November 2022. Here are some of the key takeaways from the results.

M&M – Reports highest quarterly standalone and quarterly revenue

• M&M’s standalone revenues in Q2FY23 stood at Rs 20,839 crore, up 57% on a YoY basis.
• M&M’s consolidated revenues in Q2FY23 stood at Rs 29,870 crore up 39% on a YoY basis.
• The vertical FES (farm equipment sector) achieved the highest Q2 volume.
• M&M reported a profit after tax of Rs 2,090 crore, up 46% YoY from Rs 1,433 crore a year earlier.
• Total vehicles sold were 75% higher from a year ago to 174,098 units, while it had open bookings for more than 260,000 SUVs.

Management Speak

Dr. Anish Shah, Managing Director & CEO, of M&M Ltd, said, “ Our robust financial results reflect the progress we have made on our strategic imperatives. While the auto segment has led growth, we have seen steady performance across our group companies. Our journey of creating value and providing growth capital continued through the Susten-OTPP transaction and the BII transaction.”

Mr. Rajesh Jejurikar, Executive Director, M&M Ltd, said, “It has been an action-packed quarter with multiple product launches and new products across segments, in addition to partnership announcements with BII and Volkswagen. We recorded our highest quarterly revenue for the Auto and Farm segments. In SUVs, we continue to be the Revenue market share leader. Festive sales have been strong this year across the Auto and Farm sectors. With the unveiling of the XUV4OO and our Born Electric Vision, we enter the Electric SUV segment and aim to establish a leadership position in the future.“

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LIC of India – Profits rise multifold this quarter

• LIC reported a net profit of Rs 15,952 crore for Q2FY23, a manifold increase from Rs 1,433 crore in Q2FY22.
• First-year premium, an indication of business growth, came in at Rs 9,124.7 crore for Q2FY23 as compared to Rs 8198.30 crore in Q2FY22.
• Single premium increased sharply by 62% YoY to Rs 66,901 crore in Q2FY23.
• Net premium income was Rs 1.32 lakh crore in Q2FY23, compared with Rs 1.04 lakh crore in Q2FY22.
• LIC settled claims to the tune of Rs 84,269.04. crore during Q2FY23.

Ashok Leyland – Robust demands drives massive profit growth

• Ashok Leyland’s revenue from operations grew a massive 85% YoY at Rs 8,266 crore in Q2FY23 compared to Rs 4,458 crore aided by significant growth in sales of trucks on the back of robust demand in the market.  
• Ashok Leyland has posted a net profit of Rs 199 crore for Q2FY23,  against a net loss of Rs 83 crore in Q2FY22. 
• The company reported an EBITDA of Rs 537 crore in Q2FY23 when compared with an EBITDA of Rs 135 crore in Q2 FY22.
• The domestic medium and heavy commercial vehicle sales rose 113% at 25,475 units in Q2FY23 compared with 11,988 units in Q2FY22.
• LCV volumes were higher by 28% at 17,040 units in Q2FY23 as against 13,328 units in Q2FY22.

Management Speak

“While we will pursue growth, we want to do it profitably and sustainably, the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, defense, and digital customer solutions which have contributed increasingly to our revenue,” said Gopal Mahadevan, Director & CFO, of Ashok Leyland

“Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, the industry has seen strong volumes in Q2 FYI23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles and we remain confident and optimistic about the future,” said Dheeraj Hinduja, Executive Chairman, of Ashok Leyland.

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

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