M&M PAT grows 13% YoY to Rs 3,841 cr in Q2 FY25

Mahindra & Mahindra reported 13.2% rise in standalone net profit to Rs 3,840.88 crore on 12.25% increase in income from operations to Rs 28,919.34 crore in Q2 FY25 over Q2 FY24.

Profit before tax (PBT) grew 14.09% year on year (YoY) to Rs 4,930.98 crore in the quarter ended 30 September 2024.

PAT margin improved to 8.4% in September 2024 quarter as against 6.8% posted in same quarter last year.

M&M sold 2,31,038 units in second quarter of FY25 (Includes 28,266 volume sold by separate entity MLMML, which was demerged from Sep23 onwards. Revenue in standalone results do not include realisation from these volumes) recording growth of 9% on YoY basis. Total tractors stood at Rs 92,382, registering a growth of 4% on YoY basis.

On consolidated basis, the companys net profit jumped 35.05% to Rs 3,170.72 crore on 10.13% rise in income from operations to Rs 37,923.74 crore in Q2 FY25 as compared with Q2 FY24.

The companys revenue from automotive segment was at Rs 21,755.21 crore (up 15.29% YoY) while revenue Farm Equipment sector (FES) stood at Rs 8,194.30 crore (down 2.14% YoY).

Dr. Anish Shah, managing director & CEO, M&M, said, Our businesses have delivered a solid operating performance this quarter. Auto and Farm continued to strengthen market leadership by gaining market share and expanding margins. MMFSL GS3 remained under 4% (at 3.8%) and end losses have improved structurally. TechM delivered a good quarter and the long-term focus remains on reverting to past profitability. Our growth gems are progressing well on the 5x challenge.

Rajesh Jejurikar, executive director & CEO (Auto and Farm Sector), M&M, said, In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches. Volume market share for LCVs <3.5T stands at 52.3%, a rise of 260 bps YoY. The auto standalone PBIT margin was 9.5%, a gain of140 bps YoY (excl. PY gain on LMM transfer). In our tractor business, we achieved our highest -ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY.

Amarjyoti Barua, Group CFO, said, While the Auto and Farm segments continue to deliver the strong performance we have come to expect of them, this quarter also reflected the strength of our Services portfolio. This has been the trend through H1 F25 and we expect it to continue for the rest of the year in line with our strategy.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

The scrip declined 0.33% to currently trade at Rs 2,925 on the BSE.

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