M&M Q2FY24 results: Profit hits brakes; consolidated net down 15%

Mahindra and Mahindra (M&M) reported a 15 per cent dip in its consolidated net profit for the July-September quarter of 2023-24 (Q2FY24) to Rs 2348 crore, while its revenue from operations was up 15 per cent to Rs 34,436 crore during the quarter under review against Rs 29,871 crore last year.
 

On a sequential basis, the company's net profit declined 33 per cent from Rs 3,508 crore in the previous quarter, while it posted a 1.6 per cent rise in revenue from operations. M&M stock was down 1.86 per cent on the BSE.
 

Anish Shah, managing director and chief executive officer, M&M, said: “During Q2, operating performance across auto, farm and services was robust. Auto rapidly grew to double its operating profit. Farm continues to be resilient despite tough market conditions.”
 

The automotive segment revenues were up 20.3 per cent year-on-year (Y-o-Y) to Rs 18,869 crore, with a profit before tax of Rs 1431 crore, resulting in a profit before tax margin of 7.6 per cent. The consolidated PAT for the auto business doubled to Rs 1,015 crore.

Rajesh Jejurikar, executive director and chief executive officer (CEO) (Auto and Farm Sector), M&M said: “We delivered yet another robust performance in this quarter. We have maintained our SUV revenue market share at 19.9 per cent while further improving our Auto Standalone PBIT margins. In the tractor business, we increased our market share by 150 bps on the back of exciting new launches of Oja, Swaraj Target, and Naya Swaraj. Our E-3W business continued market leadership with 61.1 per cent market share.”
 

On a standalone basis, the auto PBIT margin came in at 7.9 per cent in Q2FY24, which is better than the FY19 margins.

The automotive business posted its highest-ever quarterly volumes at 212,000 units, up 18 per cent. Open bookings of SUV at 286,000 units (as of November 1, 2023). 
 

M&M continues to get 55,000 fresh bookings every month and cancellations are below 8 per cent.
 

As for the farm segment, the consolidated revenue came in at Rs 8373 crore, down 4 per cent, while the Q2 PAT stood at Rs 800 crore, down 7 per cent (excluding Swaraj Engine). 
 

The company’s tractor market share came in at 41.6 per cent, up 150 basis points (bps), and it launched the Oja and Naya Swaraj range of tractors.