M&M Q1 Results: Net profit drops 5% to ₹2,612 crore, revenue rises 12% YoY

M&M Q1 results: Auto major Mahindra & Mahindra (M&M) on Wednesday reported a standalone net profit of ₹2,612.63 crore for the first quarter of FY25, registering a drop of 5.3% from ₹2,759.43 crore in the year-ago period. 

The fall in PAT was on account of two one-off gains totalling to ₹763 crore last year, the auto major said.

M&M’s revenue from operations in Q1FY25 increased 12% to ₹27,038.79 crore from ₹24,137.19 crore, year-on-year (YoY). The auto maker recorded market share gains and continued margin expansion for both Auto and Farm segment.

“We have started the F25 fiscal year with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins,” said Anish Shah, Managing Director & CEO, M&M Ltd.

At the operational level, earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter ended June 2024 increased 22% to ₹4,023 crore from ₹3,286 crore, YoY. EBITDA margin also improved by 130 basis points (bps) to 14.9% from 13.6%, YoY.

“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,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.

M&M Auto Segment Results

M&M’s auto segment revenue in Q1FY24 rose 13% to ₹18,947.09 crore from ₹16,753.88 crore, YoY. The segment’s EBIT rose 39% YoY to ₹1,798.32 crore, while EBIT margin improved to 9.5% from 7.7%, YoY.

Mahindra sold total 2,11,550 units of vehicles in June quarter, a growth of 14% from 1,86,138 units sold in the same quarter last fiscal year.

M&M Farm Equipment Segment Results

M&M’s Farm Equipment segment revenue increased 9% YoY to ₹8,144.15 crore, while its EBIT rose 16% to ₹1,505.81 crore and EBIT margin expanded to 18.5% from 17.5%, YoY.

Tractor sales of the company during the quarter rose 5% to 1,20,492 units from 1,14,293 units sold in the year-ago quarter. This was the highest ever quarterly tractor volumes for the company.

At 1:25 pm, M&M share price was trading 1.07% higher at ₹2,952.75 apiece on the BSE.