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Informist, Thursday, Nov. 7, 2024

 

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--M&M Jul-Sept farm equipment revenue INR 64.97 bln vs INR 59.20 bln yr ago 
--M&M Jul-Sept automotive revenue INR 211.10 bln vs INR 185.15 bln year ago 
--M&M: Achieved highest-ever Jul-Sept market share in tractors at 42.5% 
--M&M: SUV revenue market share rose 190 bps YoY on the back of two launches 
--M&M: Maintained leadership in SUV revenue market share in Jul-Sept 
--M&M: Gained market share across auto, tractor businesses in Jul-Sept 
--M&M Jul-Sept EBITDA INR 52.70 bln vs INR 43.60 bln year ago 
--M&M Jul-Sept operating margin 18.22% vs 16.93% year ago 
--M&M Apr-Sept revenue INR 545.92 bln vs INR 485.32 bln year ago 
--M&M Jul-Sept revenue INR 275.53 bln vs INR 243.95 bln year ago 
--M&M Jul-Sept net profit INR 38.41 bln vs INR 33.93 bln year ago 
--Analysts saw M&M Jul-Sept net profit INR 34.85 bln 
--M&M Jul-Sept net profit INR 38.41 bln 

 

By Anand J.C.

 

MUMBAI – The earnings of Mahindra & Mahindra Ltd. in the September quarter beat analyst estimates on all counts, including the top line, the bottom line and the operating profit, as its automobile business posted the highest ever quarterly volumes and the tractor business gained a record high quarterly market share.

 

Net profit of M&M in the September quarter was INR 38.41 billion, higher than analysts' estimate of INR 34.85 billion. The Mumbai-based carmaker's bottom line was higher by 13.2% on year and 47% sequentially. 

 

Income from operations for the company in the September quarter was INR 289.19 billion, 12.3% higher on year and 6.6% up sequentially. The Street had expected a top line of INR 272.18 billion. While income from investments related to subsidiaries remained muted on year, revenue from core operations was INR 275.53 billion in the latest quarter, 13% higher on year. M&M's other income in the September quarter was INR 6.78 billion, 17% lower on year.

 

M&M's earnings before interest, taxes, depreciation, and amortisation in the September quarter were INR 52.70 billion, 21% higher on year. It was also 36% higher than analyst estimate of INR 38.67 billion. EBITDA margin of the automaker in the latest quarter was 18.2%, higher than 16.9% reported in the year ago quarter. Analysts expected an EBITDA margin of 14.2%.

 

Total expenses incurred in the September quarter was INR 246.66 billion, 10.8% higher on year. The cost of materials consumed was INR 199.07 billion in Jul-Sept, 6.2% higher on year. The company's finance costs inched up 66% on year to INR 551.3 million in the September quarter. Depreciation and amortisation expenditure was INR 9.61 billion in Jul-Sept, 16% higher from the year ago period. Other expenses increased 14% on year to INR 20.07 billion in the latest quarter.

 

Tax outgo in Jul-Sept was INR 10.90 billion, 17.4% higher on year.

 

M&M's net profit in Apr-Sept was INR 64.53 billion, 4.9% higher on year while income from operations in the same period was INR 560.52 billion, 11.7% higher on year. 

 

M&M SEGMENTS

The company's sales volumes during Jul-Sept was 231,038 units, a record-high quarterly reading for the carmaker. The company sold 136,000 utility vehicles in Jul-Sept, a quarterly record high. The profit before interest and taxes for the automotive business was INR 20.06 billion. The profit before interest and tax margin for the business was 9.5% in the September quarter, 140 basis points higher on year. This excludes the previous year's gains from the transfer of its Last Mile Mobility business, the company said in a press release.

 

The consolidated revenue of its automotive business in the September quarter was INR 217.55 billion, 15% higher on year. The consolidated profit after tax for M&M's automotive business in the September quarter was INR 14.23 billion, up 40% on year. 

 

The market share of M&M's tractor business in the trailing September quarter was 42.5%, a record high. Volumes sold in the quarter were 92,382, up 4%. Standalone profit before interest and taxes for the farm equipment business was INR 11.36 billion, up 20% on year, while the profit before interest and tax margin was 17.5%, up by 150 bps. The consolidated farm equipment business revenue was INR 81.94 billion, down 2% on year. The consolidated profit after tax in the September quarter was INR 8 billion, which was flat on year due to macroeconomic headwinds in the international farm markets, the company said. 

 

The consolidated profit of its financial services business was INR 9.47 billion on revenues of INR 90.10 billion in the September quarter.

 

At 1324 IST, shares of M&M traded at INR 2,928, down 0.2%, on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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