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Informist, Monday, May. 5, 2025

 

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--M&M Jan-Mar net profit INR 24.37 bln
--Analysts saw M&M Jan-Mar net profit INR 24.70 bln
--M&M Jan-Mar net profit INR 24.37 bln vs INR 20.00 bln year ago 
--M&M Jan-Mar revenue INR 316.09 bln vs INR 254.34 bln year ago 
--M&M to pay INR 25.30 per share dividend 
--M&M FY25 net profit INR 118.55 bln vs INR 106.42 bln year ago 
--M&M FY25 revenue INR 1.186 tln vs INR 1.013 tln year ago 
--M&M Jan-Mar automotive revenue INR 249.76 bln vs INR 200.16 bln year ago 
--M&M Jan-Mar farm equipment revenue INR 64.28 bln vs INR 52.27 bln yr ago 
--M&M Jan-Mar operating margin 13.35% vs 13.48% year ago 
--M&M Jan-Mar EBITDA INR 42.19 bln vs INR 34.28 bln year ago 
--M&M Jan-Mar automotive ops EBIT INR 23.06 bln, up 28% on year 
--M&M Jan-Mar automotive ops EBIT margin 9.2% vs 8.8% year ago 
--M&M Jan-Mar farm ops EBIT INR 12.50 bln, up 51% on year 
--M&M Jan-Mar farm ops EBIT margin 19.4% vs 15.8% year ago 
--M&M Jan-Mar SUV revenue market share increased 310 bps on year 
--M&M Jan-Mar tractor market share at 41.2%, up 180 bps on year 
 

By Avishek Rakshit

 

KOLKATA – Volume growth of 19% on year lifted automotive major Mahindra & Mahindra Ltd.'s revenue growth for the March quarter to the highest in the last 18 quarters. The company, however, missed the Street's expectations of net profit by a thin margin. 

 

Mahindra & Mahindra reported over 24% on-year revenue growth for the March quarter at over INR 316 billion, surpassing the Street's expectation of INR 304 billion. The net profit rose nearly 22% on year to over INR 24 billion, lower than the Street's projection of around INR 25 billion.

 

The revenue growth was primarily on account of higher sales volume of vehicles and tractors. During Jan-Mar, automotive sales volume increased 18% on year to 253,028 units, and tractor sales volume increased 23% to 87,138 units. As a result, total units – which include both automotive and tractor volumes – rose 19% on year to 340,166 units. 

 

In terms of revenue, Mahindra & Mahindra gained market share by 310 basis points at nearly 24%, and its market share in the sport utility vehicle, or SUV segment, increased by 210 basis points to around 23%. In the light commercial vehicle segment of less than 3.5 tonnes, its market share increased by 290 basis points to nearly 52%. In a statement, the company said its electric sport utility vehicle registered 30,179 bookings on the very first day of launch, and it delivered 6,300 of these units as of March-end. 

 

"We have delivered strong growth on the back of stellar execution in FY25. Auto and farm continue to gain market share and expand profitability," Group Chief Executive Officer and Managing Director Anish Shah said in the statement.

 

Rajesh Jejurikar, executive director and chief executive officer of the  automotive and farm segment, said that in terms of tractor sales, the company recorded its highest-ever March quarter market share of over 41%, and gained market share by 180 basis points on year. "In FY25, our auto standalone PBIT (profit before interest and tax) margin improved by 110 bps (basis points) and core tractor PBIT margins improved by 200 bps," he said. 

 

Higher sales volume resulted in revenue from the automotive segment increasing nearly 25% on year to around INR 250 billion, and the top line from the farm equipment segment rising 23% on year to a little over INR 64 billion. The earnings before interest and tax, or EBIT, from the automotive segment increased 28% on year to a little over INR 23 billion, and the EBIT margin from this division increased to 9.2% in Jan-Mar from 9% in the year-ago quarter. EBIT from the farm equipment segment surged 51% on year to nearly INR 13 billion, and the EBIT margin increased to 19.4% from 15.8% in the year-ago period. 

 

The overall earnings before interest, tax, depreciation, and amortisation increased to over INR 42 billion during the period under review from over INR 34 billion in the year-ago quarter, but the operating margin declined marginally to 13.4%. 

 

"In line with our commitment to capital allocation, we have sharpened our focus in international farm geographies. Our results include nearly 10,000 cr. (INR 100 billion) of cash generation in FY25 which gives us the ability to continue to drive value for our shareholders through strategic investments. We are happy to declare a 20% growth in dividend for FY26 on the back of this strong performance," Amarjyoti Barua, group chief financial officer, said in the statement. 

 

For 2024-25 (Apr-Mar), M&M's net profit increased over 11% to over INR 118 billion, and income from operations rose 17% to over INR 1.19 trillion. The company has declared dividend of INR 25.3 per share.

 

At 1329 IST, shares of Mahindra & Mahindra were up 2.7% at INR 3,006.0 on the National Stock Exchange.  End

 

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

 

Edited by Avishek Dutta

 

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