Mahindra and Mahindra, India's second-largest SUV player and a prominent tractor manufacturer, expects some margin pressure during the third quarter of FY25 amid new launches scheduled later this month.
"What we have to work through is we do have a lot of launch expenses, especially in Q3, so there will be some temporary pressure on margins that you will see," Amarjyoti Barua, Chief Financial Officer of the company, said during the post-result investor meet. "But that's not a long-term thing, it's a temporary thing," he added.
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Mahindra is set to unveil its production-ready BE.05 SUV and the XUV.e9 on November 26 in Chennai. Positioned above the XUV400 electric SUV, the BE.05 will compete with the Tata Curvv EV as well as upcoming models like the Hyundai Creta EV. Although the XUV.e9 will launch without direct competition, the Harrier EV is likely to be available at a similar price range, reports suggest.
Previously, the company launched three products in the space of six months. The most notable one is the Thar Roxx on August 15. The company registered a staggering 1,76,218 bookings within the first hour of commencement.
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During the quarter, the Thar maker'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, according to the company's stock exchange filing.
Mahindra and Mahindra shares closed at Rs 2,891, lower by 1.5 percent from the last close on the NSE. M&M shares have rallied 68 percent since the start of the year.
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