Mahindra & Mahindra Ltd on Friday reported a 20% rise in consolidated profit after tax (PAT) to ₹3,181 crore in the December quarter.

The company had posted a consolidated PAT of ₹2,658 crore in the year-ago period.

Revenue for the quarter under review grew 17% year-on-year to ₹41,470 crore from ₹35,299 crore a year earlier, the company said.

In the auto segment, the company said, quarterly volumes stood at 2,45,000, up 16% year-on-year while utility (UV) volumes for the quarter stood at 1,42,000.

Auto segment revenue for the third quarter of the current fiscal was at ₹23,391 crore, registering a 21% growth, while consolidated PAT stood at ₹1,438 crore, up 20% year-on-year, it said.

The company said while domestic operations are doing incredibly well, it expects businesses having the momentum to continue, while international operations are weak, driven by macro headwinds in those international markets.

“Our businesses continue to demonstrate strength in execution. Auto and farm delivered solid performance on market share and margins, on the back of focused execution. The transformation at TechM is gathering momentum,” M&M Ltd Managing Director & CEO Anish Shah said.

He said Mahindra Financial services (MMFSL) continues to balance asset quality and growth priorities, with Gross Stage (GS) under 4₹ on the back of strong assets under management (AUM) growth.

“In Q3 FY25, we were No. 1 in SUV revenue market share with 200 bps Y-o-Y increase.

“The auto segment PBIT (Profit Before Interest and Taxes) is up by 120 basis points Y-o-Y. We achieved the highest-ever Q3 tractor market share at 44.2 per cent, a gain of 240 bps Y-o-Y, and farm PBIT is up by 260 bps Y-o-Y,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.

The company’s Q3 consolidated results reflect strong performance across multiple businesses despite global headwinds, said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.

“Our operating businesses remain laser-focused on execution, and we remain committed to disciplined capital allocation to drive long-term shareholder value creation,” he added.

“International [operations] is weak, driven by macro headwinds in those international markets. It’s not our business performance. Our businesses have actually held up quite well, but there are macro headwinds in those markets which have been challenging.

“And as you look at international operations, it’s important for us to look at where there is a structural change in the market versus where it’s a temporary headwind. And that’s an evaluation, especially in our farm businesses, that we’ll continue to do in the fourth quarter. And we expect to reach some decisions regarding our international operations in the fourth quarter,” he said.

The tractor industry is expected to grow at 15% plus in the March quarter, which will take its annual growth of around 7% plus, Jejurikar said.

There are several positive factors that we’re seeing which are enabling this growth, he added.

He also said as against a muted growth in the LCV segment, the company has seen growth in this segment less than 3.5 times.

He, however, said that Mahindra has grown with a fair amount of capex investments over the last few years as well.

The company added that it expects the income tax relief to increase traction in demand for its XUV 3XO SUV.

For the month, the company reported the highest-ever SUV sales of 54,504 vehicles, a 25% growth Year on Year.
| Photo Credit: Special Arrangement

Mahindra & Mahindra Ltd sold a total of 96,648 vehicles including exports for the month of October as compared with 80,679 units a year ago, up 20%.

For the month, the company reported the highest-ever SUV sales of 54,504 vehicles, a 25% growth Year on Year (YoY).

Including exports, the total SUV sales were 55,571 units. The domestic sales for Commercial Vehicles stood at 28812 units. Total exports went up by 89% to 3,506 units.

Veejay Nakra, President, Automotive Division, M&M Ltd., “The month began on a fantastic note with Thar ROXX garnering 1.7 lakh bookings in the first 60 minutes [of opening of booking] and the positive momentum continued across the SUV portfolio through the festive season.”

Good monsoon yields 30% higher tractor sales

Mahindra & Mahindra Limited’s Farm Equipment Sector (FES), for October 2024, has reported total tractor sales (Domestic + Exports) at 65,453 units, as against 50,460 units for the same period last year, up 30% Exports for the month remained flat at 1,127 units.

Domestic sales in October 2024 were at 64,326 units, as against 49,336 units during October 2023, up 30%.

Hemant Sikka, president, Farm Equipment Sector, Mahindra & Mahindra Limited, said “The tractor industry has seen very robust growth on the back of many positive factors coming together, notable being a very good monsoon, a good Kharif crop, high reservoir levels which will help in Rabi crops and the government’s announcement of higher MSP on key Rabi crops.”

“With festive season providing momentum to positive sentiments, we expect demand to remain strong in the coming months,” he added.