M&M Q4 results: Net profit jumps 31.6% to Rs 2,038 cr on strong SUV demand

Utility vehicles (UV) accounted for more than half of passenger vehicle sales in India, rising 31% year-on-year, according to an industry body

Indian automaker Mahindra & Mahindra reported better-than-expected fourth-quarter profit on Thursday, helped by continuing strong sales of its sports utility vehicles (SUVs).
 

The company said standalone profit after tax rose 31.6 per cent to Rs 2,038 crore ($244.06 million), beating analysts' estimates of Rs 1,961 crore as per LSEG data.
 

Utility vehicles (UV) accounted for more than half of passenger vehicle sales in India, rising 31 per cent year-on-year, according to an industry body.
 

Mahindra sold 27.2% more SUVs - which comes under the UV category - in the quarter from a year earlier.

The company's automotive business brings in almost two-thirds of total revenue and includes the sale of commercial vehicles and SUVs such as Scorpio and Thar.
 

Open bookings for SUVs were at 220,000 as of May 1, 2024.
 

However, earnings for India's largest tractor-maker by sales were pressured by a 21.5% fall in tractor and farm equipment sales, as sub-par rains affected rural demand.
 

Revenue from the automotive segment revenue rose 20 per cent, while that of the farm equipment segment fell 13.1 per cent, Mahindra said.
 

The company said revenue from operations rose 11.2 per cent to Rs 25,109 crore, beating analysts' average estimate of Rs 24,025 crore.

Mahindra to invest $1.44 bln in EV unit

Mahindra & Mahindra has also announced that will invest Rs 12,000 crore ($1.44 billion) in its electric vehicles unit.
 

The company also said it will sell some assets associated with its EV car business to the electric unit, Mahindra Electric Automobile for Rs 796 crore.
 

Mahindra currently offers one EV model - the XUV400 - and said that it will launch its new range of EVs by next year.
 

The unit's success is also imperative for Mahindra's plans to list the EV subsidiary, the company's Managing Director Anish Shah had told Reuters in January.

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