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Mahindra & Mahindra Reports Strong Q1 FY25 Results with 20% Increase in PAT

in News — by — July 31, 2024

Mahindra & Mahindra Limited (M&M) has announced its consolidated financial results for the first quarter of FY25, showcasing robust performance across its various business segments.

Key Highlights:

  • Light Commercial Vehicles (LCVs) < 3.5T: Market share at 50.9%, up 160 bps.
  • Tractors: Leading the market with a 44.7% share, up 180 bps.
  • Electric 3 Wheelers: Dominating the segment with a 43.4% market share.
  • Financial Services: Mahindra Finance’s assets under management (AUM) up 23%, with continued improvements in asset quality.
  • Tech Mahindra: Transformation in progress with a focus on improving margins.

Financial Performance:

  • Consolidated Revenue: Rs 37,218 crore, up 10% YoY from Rs 33,892 crore in Q1 FY24.
  • Consolidated PAT: Rs 3,283 crore, up 20% YoY, excluding prior year gains.
  • Robust Return on Equity (RoE): 19.4%.

Segment Performance:

Automotive:

  • Volumes: Highest ever Q1 volumes at 212k units, up 14%, with SUV volumes at 124k units.
  • Standalone PBIT: Rs 1,798 crore, up 39%, with a PBIT margin of 9.5%, up 180 bps.
  • Consolidated Revenue: Rs 19,776 crore, up 16%.
  • Consolidated PAT: Rs 1,330 crore, up 35%, excluding prior year gains on KG Mobility.

Farm:

  • Volumes: Record quarterly volumes at 120k units, up 5%.
  • Farm Machinery Revenue: Rs 265 crore, up 34%.
  • Standalone PBIT: Rs 1,506 crore, up 16%, with a PBIT margin of 18.5%, up 100 bps.
  • Consolidated Revenue: Rs 9,711 crore, flat compared to the previous year.
  • Consolidated PAT: Rs 1,238 crore, up 4%, excluding prior year gains on KG Mobility.

Services:

  • Financial Services: AUM up 23%, with GS3 at 3.6%, improved by 80 bps. Consolidated PAT up 37%.
  • Tech Mahindra: EBIT margin improved by 170 bps, with PAT up 23%.
  • Mahindra Lifespaces: Residential pre-sales of Rs 1,019 crore, up 3x.
  • Club Mahindra: Total income of Rs 384 crore, up 8%, crossing a cumulative member base of 3 lakh.
  • Mahindra Logistics: Revenue of Rs 1,420 crore, up 10%.
  • Consolidated Revenue: Rs 8,736 crore, up 9%.
  • Consolidated PAT: Rs 715 crore, up 26%, excluding prior year gains on KG Mobility and MCIE sale.

Leadership Comments:

Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, “In Q1 F25, we gained market share in both Auto & Farm businesses. We achieved highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY. We retained market leadership in SUVs with 21.6% revenue market share and in LCVs < 3.5T, we crossed 50.9% volume market share. Auto Standalone PBIT grew by 39% with margin improvement of 180 bps YoY.”
Dr. Anish Shah, Managing Director & CEO of M&M Ltd., expressed satisfaction with the company’s strong start to FY25, highlighting the strategic focus on market share and margin expansion in Auto and Farm sectors. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), noted significant gains in market share and profitability, while Amarjyoti Barua, Group CFO, emphasised robust margin expansion and the commencement of capital investment plans.

Summary of Standalone Financials:

  • Revenue: Rs 27,133 crore, up 11% from Rs 24,403 crore in Q1 FY24.
  • EBITDA: Rs 4,116 crore, up 16% from Rs 3,551 crore.
  • PAT: Rs 2,613 crore, down 5% from Rs 2,759 crore due to prior year gains on KG Mobility and MCIE sale.
  • PAT (excluding prior year gains): Rs 2,613 crore, up 23% from Rs 2,120 crore.
  • Total Vehicles Sold: 2,11,550 units, up 14% from 1,86,138 units, including 22,982 units sold by a separate entity “MLMML” which was demerged from Sep’23 onwards.
  • Total Tractors Sold: 1,20,492 units, up 5% from 1,14,293 units.

Mahindra & Mahindra continues to demonstrate its leadership across various sectors, driving growth and profitability while maintaining a strategic focus on delivering value to stakeholders.

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