SML Mahindra's Profit Rise Signals Strategic Success
SML Mahindra reported a 2% increase in quarterly profit, reaching Rs 54 crore. Revenue surged 18% to Rs 898 crore. The fiscal year revenue was Rs 2,838 crore, with a Rs 160 crore profit. Following Mahindra's acquisition, SML was rebranded and registered growth, exceeding industry averages.
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SML Mahindra, a Mahindra Group entity, announced a 2% rise in its profit after tax for the March quarter, totaling Rs 54 crore, compared to Rs 53 crore in the same period last year. Revenue during the quarter rose 18% to Rs 898 crore, up from Rs 771 crore in the March quarter of FY25.
The company recorded cargo vehicle volumes of 1,592 and passenger vehicles at 3,705, marking a 16% year-on-year increase. Despite a 2% dip in cargo market share, passenger vehicle market share increased by 1.7% to 16% in the last fiscal's fourth quarter. For FY25-26, SML Mahindra reported a profit of Rs 160 crore with revenue touching Rs 2,838 crore.
Last April, Mahindra acquired a controlling 58.96% stake in SML Isuzu, now SML Mahindra, for Rs 555 crore. The successful acquisition and subsequent integration led to a 17% growth, above the industry's 13%. An 18% rise in revenue and a 31% increase in PAT have positively impacted the company's ratings, currently standing at AA+.
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