Mahindra & Mahindra Q2 Profit Soars 35% to Rs 3,171 cr

Mumbai, Nov 7 (PTI) Mahindra & Mahindra Ltd on Thursday reported a 35 per cent year-on-year growth in consolidated profit after tax (PAT) to Rs 3,171 crore in the July-September quarter driven by higher auto and tractor volumes.

The company had posted a consolidated PAT of Rs 2,348 crore in the second quarter of FY'24.

Consolidated revenue for the September quarter was at Rs 37,924 crore, up 10 per cent from Rs 34,436 crore in the corresponding quarter a year ago, the company said in a statement.

On a standalone basis, net profit for the quarter rose by 13.2 per cent to Rs 3,840.88 crore as compared to Rs 3,393.06 crore in the second quarter of the last year. Standalone revenue from operations grew 12.94 per cent to Rs 27,553.26 crore from Rs 24,394.79 crore in the same quarter of FY24, a regulatory filing said.

The automotive segment consolidated revenue during the previous quarter rose 15 per cent year-on-year at Rs 21,755.21 crore from Rs 18,869.30 crore a year ago.

The automotive segment consolidated profit jumped 40 per cent year-on-year at Rs 1,423 crore during the July-September period, from Rs 1,015 crore, the company said.

Farm Equipment segment consolidated revenue, however, declined 2 per cent year-on-year to Rs 8,194 crore, while the farm consolidated PAT stood at Rs 800 crore, seeing a flat growth due to macro headwinds in international farm markets, the company said.

In the farm sector, the September quarter saw the company delivering the highest-ever Q2 market share at 42.5 per cent, while the volumes grew 4 per cent year-on-year at 92,382 units from 89,101 units a year ago.

M&M Ltd also said that it has revised tractor sales growth forecast for the current fiscal to 6-6.5 per cent from 5 per cent projected earlier with the second half expected to grow in double digit.

"Our businesses have delivered a solid operating performance this quarter. Auto and farm continued to strengthen market leadership by gaining market share and expanding margins," said Anish Shah, Managing Director & CEO at M&M Ltd.

Shah further noted "M&M Financial Services Ltd (MMFSL) GS3 remained under 4 per cent and end losses have improved structurally. Tech Mahindra delivered a good quarter and the long-term focus remains on reverting to past profitability." The company recorded a 9 per cent year-on-year volume growth at 2.31 lakh vehicles, the highest-ever quarterly volumes, while the utility vehicle volumes were also the highest-ever during the quarter at 1.36 lakh units.

The SUV revenue market share during the quarter was seen at 21.9 per cent, up 190 basis points while the SUV volumes grew 18 per cent, the company said.

In less than 3.5-tons LCV category, the market share stood at 52.3 per cent, up 260 basis points, M&M Ltd said.

"In Q2 FY25, we gained market share across both our auto and tractor businesses. SUV volumes increased by 18 per cent YoY, maintaining leadership in revenue market share, with an increase of 190 basis points YoY on the back of two successful launches," said Rajesh Jejurikar, Executive Director (Auto and Farm sector) at M&M Ltd.

Stating that the company had forecast a 5 per cent growth in tractor volumes earlier, Jejurikar said at a media briefing," Now we are increasing 5 per cent for the full year (April 2024-March 2025) to 6.68 per cent.".

The upward revision in the tractor volumes forecast comes on account of the company seeing some green shoots in the industry on the back of surplus rainfall of around 8 per cent, strong reservoir levels at 87 per cent, growth in Kharif output, hike in minimum support price of key Rabi crops such as wheat and mustard by around 5-7 per cent Y-o-Y, government spending on rural development and positive terms for trade for the farmers, M&M Ltd said.

Jejurikar also said he expects the tractor volumes to grow in the 13-15 per cent range in the second half of the fiscal, saying that " we are seeing some really good revival of the rural economy.".

"While the auto and farm segments continue to deliver the strong performance we have come to expect of them, this quarter also reflected the strength of our Services portfolio. This has been the trend through H1 F25 and we expect it to continue for the rest of the year in line with our strategy," said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.