Mahindra & Mahindra has unveiled Q1 FY25 results for the quarter ended 30th June 2024. The company has demonstrated a strong operational performance in the first quarter of fiscal year 2025 (F25), driven by significant advancements in several key business areas. The company's overall profitability rose by approximately 18 per cent, reflecting its successful market strategies and operational efficiencies.
Here's a detailed overview on M&M business performance across segments:
Auto Sector:
- M&M recorded its highest-ever first-quarter volumes at 212,000 units, a 14 per cent increase, with utility vehicle (UV) volumes reaching a record 124,000 units.
- The company is on track to raise its SUV production capacity from 49,000 units per month at the end of FY24 to 64,000 units per month by the end of FY25.
- Standalone Profit Before Interest and Tax (PBIT) surged to Rs1,798 crore, marking a 39 per cent increase, with the PBIT margin improving by 180 basis points to 9.5 per cent.
- Consolidated revenue reached Rs 19,776 crore, up 16 per cent, while Consolidated Profit After Tax (PAT) grew 35 per cent to Rs1,330 crore, excluding gains from the previous year related to KG Mobility.
Farm Sector:
- The farm division achieved its highest-ever quarterly volume at 120,000 units, up 5 per cent year-on-year.
- Revenue from farm machinery for Q1 stood at Rs 265 crore, reflecting a 34 per cent increase.
- Standalone PBIT rose by 16 per cent to Rs1,506 crore, with the PBIT margin improving by 100 basis points to 18.5 per cent.
- Consolidated revenue was Rs 9,711 crore, remaining stable, while Consolidated PAT increased by 4 per cent to Rs1,238 crore, excluding prior year gains related to KG Mobility.
Financial Services & Other Segments:
- Mahindra Financial Services Limited (MMFSL) reported a 23 per cent increase in Assets Under Management (AUM), with a 3.6 per cent Gross Stage 3 (GS3) ratio, an improvement of 80 basis points. Consolidated PAT surged by 37 per cent.
- Tech Mahindra's EBIT margin improved by 170 basis points, and PAT grew by 23 per cent, reflecting a successful turnaround effort.
- Mahindra Lifespace Developers saw a significant increase in residential pre-sales, reaching Rs 1,019 crore, a threefold rise.
- Club Mahindra's total income rose by 8 per cent to Rs 384 crore, with its member base surpassing 300,000.
- Mahindra Logistics reported a 10 per cent increase in revenue, totaling Rs1,420 crore.
- Consolidated revenue for the services segment was Rs 8,736 crore, a 9 per cent increase, and Consolidated PAT grew by 26 per cent to Rs 715 crore, excluding prior year gains from KG Mobility and MCIE sale.
Overall, M&M's diversified portfolio continues to perform strongly, with significant advancements in automotive production, farm machinery sales, financial services, and other key areas.
Commenting on Q1 FY25 performance, Dr. Anish Shah, Managing Director & CEO, M&M Ltd. said, "We have started the F25 fiscal year with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins. Transformation at MMFSL is yielding results as asset quality improves and transformation at TechM has commenced with margins as a key focus. With this momentum and relentless drive towards execution, we will continue to ‘deliver scale' in F25."
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, "In Q1 F25, we gained market share in both Auto & Farm businesses. We achieved the highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY. We retained market leadership in SUVs with 21.6 per cent revenue market share and in LCVs < 3.5T, we crossed 50.9 per cent volume market share. Auto Standalone PBIT grew by 39 per cent with margin improvement of 180 bps YoY."
Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd. said, "We delivered robust margin expansion across our businesses through focused execution. We continue to meet our external commitments. We have also commenced on our capital investment plans in line with what we communicated in May'24."