Mahindra & Mahindra Ltd. (M&M) posted a 35% increase in consolidated net profit to Rs 3,171 crore for Q2 FY25, benefiting from strong performance in its automotive and services sectors and a boost in SUV sales.
According to its filing on the stock exchange, the company’s consolidated income from operations rose 10% to Rs 37,924 crore. Following this earnings report, M&M shares reversed earlier losses, trading at Rs 2,939 on the NSE at 12:25 pm, up 0.15%.
M&M’s auto division reached a record high, with 231,000 units sold, pushing consolidated revenue from the segment up by 15% to Rs 21,755 crore. Segmental profit after tax (PAT) grew by 40%, hitting Rs 1,423 crore. This growth was bolstered by the launch of the Thar Roxx and expanded SUV capacity, with SUV sales volume increasing 18%, lifting M&M’s market share by 190 basis points to 21.9%.
CEO Anish Shah commented, “Our Auto and Farm sectors continued to gain market share and strengthen margins, supporting our leadership in these markets.”
Domestic tractor demand rebounded in the farm equipment segment, with sales rising 4% to 92,382 units. However, global challenges led to a slight dip in revenue to Rs 8,194 crore, while PAT for the segment remained steady at Rs 800 crore.
The services segment also posted robust results, with consolidated revenue rising 12% to Rs 9,010 crore, and PAT almost doubling to Rs 947 crore, driven by Mahindra Finance’s growth and improved margins at Tech Mahindra. Mahindra Finance’s assets under management rose 20%, with gross stage 3 assets improving to 3.8%. Meanwhile, Tech Mahindra saw a 490 basis point increase in EBIT margin.
On a standalone basis, M&M reported a net profit of Rs 3,841 crore, up 13% from last year, with revenue climbing 12% to Rs 28,919 crore. These figures exceeded projections from a Moneycontrol brokerage poll, which had anticipated a standalone profit of Rs 3,452 crore and revenue of Rs 27,144 crore for the quarter.
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Source: Moneycontrol
