Mahindra & Mahindra Q3 results: Net profit jumps 60% YoY to Rs 2,454 crore on healthy topline

Mahindra & Mahindra Pavilion at Bharat Mobility Show

Driven by robust performance of the automotive segment, favourable product mix, and operating leverage benefits, Mahindra & Mahindra’s (M&M) standalone net profit surged 60 percent YoY to Rs 2,454 crore. Its Profit after Tax (PAT) during the same period last year was Rs 1,528.06 crore.

The Mumbai-based automaker's revenue for the third quarter grew 16 percent, on an annual basis, to Rs 25,642.4 crore led by strong growth in volumes in the automotive segment.  Its turnover during Q3FY23 stood at Rs 21,653.74 crore.

The company’s results exceeded analysts’ expectations. As per the average estimates of five brokerage firms, the company’s standalone net profit was expected to rise 45 percent YoY to Rs 2,212.46 crore.

The automaker’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 9.7 percent to Rs 3,590.3 crore as against Rs 3,273 crore reported in Q3FY23. Its operating margin expanded 80 basis points to 14 percent in the third quarter of this fiscal.

The Mumbai-based automaker’s volumes went up by 11.1 percent YoY to 3,13,115 units in Q3FY24. While auto sales went up by 20.1 percent YoY to 2,11,443 units, the tractor volumes declined by 4 per cent from the previous year to 1,00,522 units during the last quarter.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. stated that it had a “strong quarter” for both auto and farm businesses.

“We were #1 in SUVs with revenue marketshare of 21 percent in Q3 while further improving our auto standalone PBIT margins. We increased tractor market share by 80 bps to 41.8 percent in Q3 even as the overall industry contracted on back of last year’s high base, weather vagaries and lower reservoir levels. Our E-3W business is maintaining its market leadership with Q3 market share of 54% and YTD market share of 59.5 percent,”  noted Jejurikar.

At a consolidated level,  M&M reported a 34 percent increase in its consolidated profit after tax at Rs 2,658 crore for the third quarter ended December 31, 2023, driven by robust sales across verticals. Its revenue increased 15 percent to Rs 35,299 crore for the period under review, as compared to Rs 30,621 crore in the year-ago period.

Commenting on Q3 and YTD F24 performance of the group, Anish Shah, Managing Director & CEO, M&M Ltd, said: “Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions."

He added, “TechM is working through challenging operating results but I feel good that the right actions are being taken to turnaround its performance."

On Wednesday, M&M's shares closed trading 0.93% higher at Rs 1,662. M&M Q3 Results