More Stories

Informist, Friday, Feb. 7, 2025

 

HYDERABAD - Automobile major Mahindra & Mahindra Ltd. missed analysts' estimates for both net profit and revenue for the December quarter, even as it reported a double-digit growth in both key metrics on a year-on-year basis.

 

The company on Friday reported a net profit of INR 29.64 billion for Oct-Dec, up 19% on year while revenue for the quarter was up by 20% on year to INR 305.38 billion. The company's net profit growth was higher than the last two quarters, but lower than the earlier five quarters. Revenue growth was the highest in the last five quarters.

 

Analysts had expected Mahindra group's flagship company to report a 29% year-on-year growth in its net profit to INR 31.70 billion and a 20% on-year rise in revenue to INR 308.90 billion, according to an average of estimates of 12 brokerages.

 

M&M witnessed robust market share gains in both sports utility vehicles and tractors segments for the December quarter. While sports utility vehicle segment market share rose by 200 basis points on year to 23%, volumes were up by 20% on year during the quarter. In the tractors business, the company's market share was up by 240 bps on year to 44.2%. The company's electric vehicles business also gained traction and the market share as of Dec. 31 was 41.8%, the company said in a press release. 

 

The company said its Oct-Dec market share in the tractors segment was the highest ever, while the Roxx showed robust growth in the SUV segment.  

 

"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," M&M said in a press release quoting Anish Shah, managing director and chief executive officer.

 

M&M's automotive segment's revenue grew nearly 20% on year to INR 224.10 billion while farm equipment segment revenue was up over 21% on year to INR 81.67 billion.

 

 

 

The company's operating margins for the quarter improved by 165 basis points on year to 14.63% led by a decent mix of revenues. Analysts had expected M&M overall margins at around 14.8%. Automotive segment earnings before interest, taxes, depreciation and amortisation margin for the quarter was at 9.7% vs 8.5% a year ago, while farm segment EBIT margin was 18.1% against 15.5% a year ago. The company's EBITDA for the quarter was up by 32% on year to INR 48.10 billion, while analysts estimated it at INR 45.06 billion.

 

For the nine months ended December, the company's net profit was at INR 94.18 billion, up 9% on year, while revenue was up 15% on year at INR 851.30 billion.

 

The company board Friday approved incorporating a wholly-owned subsidiary, Mahindra Advanced Technologies Ltd., to provide advanced security solutions. Shares of Mahindra & Mahindra closed at INR 3,198.45, up 1.9%, on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.