The Board of Directors of Mahindra & Mahindra Limited approved the financial results for the quarter and half-year ended 30th September 2024.
Mahindra & Mahindra has reported strong growth across its business segments in Q2 of FY25, with consolidated profit after tax (PAT) of Rs 3,171 crore, marking a 35 per cent year-on-year increase. The company's automotive and farm divisions delivered robust operating results, with profits rising by 23 per cent.
Automotive Sector:
- The automotive division achieved record-high quarterly volumes of 231,000 units, a 9 per cent increase year-over-year, driven by strong demand, particularly in utility vehicles (UVs), which reached an all-time high of 136,000 units this quarter.
- The newly launched Thar Roxx received a highly positive response, contributing to this growth momentum.
- SUV production capacity rose by 10 per cent, reaching 54,000 units compared to FY24's exit levels, positioning the company to meet rising demand.
- Profitability also strengthened, with standalone profit before interest and tax (PBIT) at Rs 2,006 crore, a 34 per cent increase. The PBIT margin improved to 9.5 per cent, up 140 basis points, when adjusted for last year's gain on the LMM transfer.
- Consolidated automotive revenue grew by 15 per cent to Rs 21,755 crore, with consolidated profit after tax (PAT) up by 40 per cent to Rs 1,423 crore.
Farm Sector:
- The farm segment achieved its highest-ever second-quarter market share at 42.5 per cent, with volumes increasing by 4 per cent to 92,000 units.
- Farm machinery revenue grew 14 per cent in Q2, totalling Rs 253 crore.
- Standalone PBIT in the farm segment reached ₹1,136 crore, a 20 per cent increase, with the PBIT margin improving by 150 basis points to 17.5 per cent.
- However, consolidated farm revenue saw a slight 2 per cent decline to Rs 8,194 crore, while consolidated PAT was flat at Rs 800 crore, impacted by challenging macroeconomic conditions in international farm markets.
Services Sector:
- Tech Mahindra experienced significant margin expansion, with EBIT improving by 490 basis points and PAT growing by 2.5 times.
- Mahindra Logistics achieved revenue growth of 11 per cent, totalling Rs 1,521 crore.
- The services sector's consolidated revenue increased by 12 per cent to Rs 9,010 crore, with consolidated PAT up by 1.8 times, reaching Rs 947 crore.
Commenting on Q2 FY25 Performance, Dr. Anish Shah, Managing Director & CEO of Mahindra & Mahindra Ltd., commented, "Our businesses have delivered solid operating performance this quarter. The Auto and Farm sectors continue to strengthen market leadership by gaining market share and expanding margins. MMFSL's GS3 remained under 4 per cent (3.8 per cent ), and end losses have improved structurally. Tech Mahindra delivered a strong quarter, with a focus on returning to past profitability. Our growth initiatives under the '5x challenge' are progressing well."
Rajesh Jejurikar, Executive Director & CEO of the Auto and Farm Sector, added, "In Q2 FY25, we gained market share in both the Auto and Tractor businesses. SUV volumes increased by 18 per cent YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY, thanks to two successful launches. Our LCV volumes <3.5T also grew, with a market share increase of 260 bps YoY. The standalone auto PBIT margin rose to 9.5 per cent, up 140 bps YoY. In our tractor business, we achieved our highest-ever Q2 market share at 42.5 per cent, with standalone margins improving by 150 bps YoY."
Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd., stated, "While the Auto and Farm segments continue to perform strongly, this quarter also highlighted the strength of our services portfolio. This has been a consistent trend through the first half of FY25, and we expect it to continue for the rest of the year in line with our strategic objectives."