Mahindra & Mahindra's (M&M) standalone net profit during the first quarter of this fiscal fell marginally by 5.3 percent on a Year-on-Year (YoY) basis to Rs 2,613 crore, as against Rs 2,759 crore in the corresponding quarter previous year.
The company, which makes the 'Scorpio' SUV, said on July 31 that its revenue from operations during the first quarter of this fiscal rose to Rs 27,038.79 crore from Rs 24, 137.19 crore in the same quarter a year, a YoY growth of 12.02 percent.
The automaker’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the June quarter rose 16 percent YoY to Rs 4,116 crore, compared with Rs 3,551 crore in the year-ago period. Its operating margins came in at 14.9 percent for the June quarter as against 13.6 percent a year ago.
M&M's margins came in at 14.9 percent for the June quarter as against 13.6 percent in Q1FY24.
A Moneycontrol poll of seven brokerage estimates pegged Mahindra & Mahindra's fiscal first quarter net profit at Rs 2,678 crore and revenue at Rs 28,166 crore. During the same period last year, M&M’s standalone profit nearly doubled year-on-year, helped by a one-time gain of over Rs 405 crore.
The homegrown automaker's reported growth in the revenue market share in the SUV segment and gained market share in the tractors segment in the June quarter.
M&M posted a 20 percent increase in its consolidated net profit at Rs 3,283 crore for the first quarter ended June 30, 2024. Its profit after tax stood at Rs 2,745 crore in the year-ago period. Its consolidated revenue rose 10 percent year-on-year to Rs 37,218 crore as compared to Rs 33,892 crore in the June quarter of last fiscal.
Anish Shah, Managing Director & CEO, M&M stated that the company has started FY25 with strong operating performance across all its businesses.
“Capitalising on leadership positions, Auto and Farm continued to expand marketshare and profit margins. With this momentum and relentless drive towards execution, we will continue to deliver scale in F25,” he noted.
Key Highlights
M&M reclaimed the leadership position in SUVs in terms of revenue market share at 21.6 percent, higher by 130 bps, and in tractors it emerged as the market leader with a share of 44.7 percent. In sub-3.5 tonne LCVs and e-three wheelers, it registered a market share of 50.9 percent and 43.4 percent, respectively.
Underscoring the growth in market share in both auto and farm business, Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M said, “We retained market leadership in SUVs with 21.6 percent revenue marketshare and in LCVs < 3.5T, we crossed 50.9 percent volume market share. Auto standalone PBIT grew by 39 percent with margin improvement of 180 bps YoY.”
On July 31, M&M's shares on BSE closed trading 0.45 percent lower at Rs 2,909 apiece.
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