Mahindra & Mahindra (M&M) reported a standalone net profit of ₹2,612.63 crore for the first quarter of FY25, reflecting a 5.3% decline from ₹2,759.43 crore in the same period last year. Despite the decrease in profit, M&M’s revenue from operations for Q1FY25 grew by 12% year-on-year (YoY) to ₹27,038.79 crore, up from ₹24,137.19 crore. The company recorded gains in market share and continued margin expansion in both its Auto and Farm segments.
Anish Shah, Managing Director & CEO of M&M Ltd., remarked on the results, saying, “We have begun FY25 with robust operational performance across all our business segments.” Leveraging our leadership positions, both the Auto and Farm segments have continued to expand market share and profit margins.”
At the operational level, earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter ended June 2024 rose by 22% YoY to ₹4,023 crore, compared to ₹3,286 crore in the previous year. The EBITDA margin improved by 130 basis points, reaching 14.9%, up from 13.6% YoY.
Rajesh Jejurikar, Executive Director & CEO of M&M’s Auto and Farm Sector, noted the company’s achievements in Q1FY25, stating, “We gained market share in both the Auto and Farm businesses, achieved our highest-ever quarterly tractor volumes, and improved our Core Tractors PBIT margin by 110 bps YoY. We maintained market leadership in SUVs with a 21.6% revenue market share and surpassed a 50.9% volume market share in LCVs under 3.5 tons. Auto standalone PBIT grew by 39% with a margin improvement of 180 bps YoY.”
M&M’s Auto segment revenue in Q1FY25 increased by 13% YoY to ₹18,947.09 crore, with EBIT rising 39% YoY to ₹1,798.32 crore. The segment’s EBIT margin improved to 9.5% from 7.7% YoY. The Farm Equipment segment also saw revenue growth of 9% YoY to ₹8,144.15 crore, with EBIT rising 16% to ₹1,505.81 crore, and an EBIT margin expansion to 18.5% from 17.5% YoY. Tractor sales during the quarter rose by 5% to 1,20,492 units, marking the highest-ever quarterly tractor volumes for the company.
