Investing.com — The shares of homegrown auto major Mahindra & Mahindra (NS:) surged for a second consecutive session, up 2.4% to Rs 914 apiece at 10:32 am on Wednesday. The scrip gained almost 3% to Rs 919 on in early trade hours today, backed by positive quarterly earnings results released yesterday.
The automaker’s stock continued to rise in Wednesday’s session, despite the headline index declining by 0.43% or 264.58 points at 10:35 am.
The company’s stock surge is led by a 214% jump in net profit on a YoY basis, recorded at Rs 1,929 crore for Q2 FY22. The net profit jumped almost three times majorly due to an asset impairment charge of more than Rs 1,400 crore taken by M&M in the same quarter last year.
Additionally, M&M’s revenue from operations rose 4.7% YoY to Rs 13,305 crore, and its sales in the auto sector grew by 9% YoY to 99,334 vehicles.
The investors of the automaker’s stock have been rewarded with a return of almost 48% in the past year, while the stock has risen over 16% in the last three months alone.
Additionally, M&M has announced that it will launch 16 electric vehicles across the SUV and light commercial vehicle categories over the next six years, to secure its position as the market leader in the Indian EV space. For this, it will invest Rs 3,000 crore in its electric vehicles segment by 2024.