Mahindra Q1 Profit Up 20% to Rs 3,283 Crore | Revenue at Rs 37,218 Crore

Mumbai, Jul 31 (PTI) Mahindra & Mahindra on Wednesday posted a 20 per cent increase in its consolidated net profit at Rs 3,283 crore for the first quarter ended June 30, 2024.

The Mumbai-based company had reported a profit after tax of Rs 2,745 crore in the year-ago period.

Revenue rose 10 per cent year-on-year to Rs 37,218 crore as compared to Rs 33,892 crore in the June quarter of last fiscal, the company said.

The company, in a statement, clarified that "there is a gain of 20 per cent in operational profits for the first quarter of FY25. The reported PAT drop is on account of two one-off gains last year."

"We had a gain of Rs 405 crore on our KG Mobility investment at the time of listing of the stock and we recorded a gain on sale of our stake in MCIE for Rs 358 crore. These numbers -- adding up to Rs 763 crore - are not repeated in this year's [Q1 FY25] numbers," it said.

"We have started the FY25 with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins," Mahindra & Mahindra Managing Director & CEO Anish Shah said on the company's financial performance.

"Transformation at (Mahindra & Mahindra Financial Services Limited) MMFSL is yielding results as asset quality improves and transformation at TechM has commenced with margins as a key focus," he added.

"With this momentum and relentless drive towards execution, we will continue to 'deliver scale' in FY25," Shah said.

The company said it recorded the highest-ever Q1 volumes at around 2.12 lakh units, an increase of 14 pc year-on-year with the utility vehicle segment also seeing highest-ever Q1 volumes at 1.24 lakh units. The company said it also increased its SUV portfolio capacity to 49,000 units from 18,000 units.

On the farm sector business, M&M said the tractor volumes were up 5 per cent at 1.20 lakh units.

"In Q1 FY25, we gained market share in both auto and farm businesses. We achieved highest-ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps y-o-y," said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.

He said the company retained market leadership in SUVs with 21.6 per cent revenue market share and in LCVs in more than 3.5 tonnes category, it crossed 50.9 per cent volume market share.

Jejurikar also said that the company wants the waiting periods to be as less as possible and that's the reason for increasing capacity to 49,000 units.

"We delivered robust margin expansion across our businesses through focused execution. We continue to meet our external commitments," said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.

"We have also commenced on our capital investment plans in line with what we communicated in May 2024," he said.