Mahindra & Mahindra Ltd's consolidated net profit surged 35 percent on-year to Rs 3,171 crore for Q2 FY25, aided by robust earnings growth across its automotive and services segments, and expanding SUV sales.
The automobiles and farm equipment major reported a consolidated income from operations of Rs 37,924 crore, up 10 percent from the previous year, showed the company's stock exchange filing.
Following the earnings update, M&M share price recovered the day's loss to turn into green. The stock was trading at Rs 2,939 on NSE at 12.25 pm, up 0.15 percent from the previous close.
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M&M's auto segment saw its highest-ever quarterly volume at 231,000 units, contributing significantly to the performance, with consolidated revenue from this segment rising 15 percent on-year to Rs 21,755 crore. The segment's consolidated profit after tax (PAT) increased 40 percent, reaching Rs 1,423 crore, it said.
The recent Thar Roxx launch and an expansion in SUV capacity boosted auto sales, with SUV volumes up 18 percent and market share climbing by 190 basis points to 21.9 percent.
Mahindra & Mahindra Managing Director & CEO Anish Shah said: "Auto and Farm continued to strengthen market leadership by gaining market share and expanding margins."
While tractor demand saw a revival, with the tractor sales volume rising 4 percent on-year to 92,382 units, the farm equipment segment faced international headwinds. This resulted in a slight decline in revenue to Rs 8,194 crore and a flat PAT at Rs 800 crore.
In services, consolidated revenue grew 12 percent to Rs 9,010 crore, while PAT nearly doubled to Rs 947 crore, led by Mahindra Finance’s strong asset growth and margin gains at Tech Mahindra.
Mahindra Finance’s assets under management increased by 20 percent, with improvements in loan quality as its gross stage 3 assets dropped to 3.8 percent. Tech Mahindra reported a 490 basis points improvement in its EBIT margin.
On a standalone basis, Mahindra & Mahindra reported a net profit of Rs 3,841 crore for Q2 FY25, marking a 13 percent increase from the previous year. Standalone revenue from operations rose 12 percent to Rs 28,919 crore. These results surpassed a Moneycontrol brokerage poll estimate, which had projected a standalone net profit of Rs 3,452 crore and revenue of Rs 27,144 crore for the quarter.
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