Mahindra and Mahindra Ltd mentioned on Friday demand for its automobiles is outstripping manufacturing capability as folks rush to purchase the automaker’s fashionable sport-utility automobiles (SUVs), boosting income.
The automaker reported a pointy soar in first-quarter internet revenue as gross sales of its passenger automobiles soared to 149,803, up 74% from a yr in the past, whereas it has open bookings for greater than 273,000 automobiles.
“We have kicked off capacity expansion programmes but had not anticipated this kind of demand,” Rajesh Jejurikar, government director on the Mumbai-headquartered firm mentioned.
“We are ramping up capacity to make sure we can leverage all the demand we have,” he instructed reporters, declining to offer additional element on how a lot capability the corporate is including.
Mahindra mentioned it obtained greater than 100,000 orders inside half-hour of opening books for its Scorpio-N SUV, price round 180 billion rupees ($2.3 billion) in gross sales worth. It at present has the capability to provide round 6,000 of those automobiles a month, Jejurikar mentioned.
While demand for automobiles has been robust, Indian automakers, together with Mahindra, say they’re additionally seeing an easing of the semiconductor shortages which have hampered the trade because the pandemic. Mahindra was hit exhausting by a chip scarcity, curbing provides of its automobiles final yr.
Jejurikar mentioned the corporate sources chips from a number of places and there aren’t any early alerts of provide disruption as a result of geopolitical state of affairs in Taiwan.
The firm reported a consolidated internet revenue of 21.96 billion rupees for the three months ended June 30, up from 4.24 billion a yr earlier. Revenue from operations rose 48% in the course of the quarter to 284.12 billion rupees.
Its working margin, nonetheless, narrowed 200 foundation factors to 11.9%.
Shares of Mahindra ended the day 2% decrease.
($1 = 79.2300 Indian rupees)
Also Read:
Source: auto.economictimes.indiatimes.com