Mahindra Group Firing On All Cylinders, Execution Is Key: CEO Anish Shah

For Mahindra Group, all growth levers are in place for a takeoff. What remains is the execution, according to a top executive.

“Today, multiple growth channels are firing on all cylinders. It’s really about pure execution (hereon),” Anish Shah, chief executive officer at Mahindra Group, told NDTV Profit’s Niraj Shah during a post-earnings interaction on Thursday.

His words hold water. Mahindra’s various businesses—from real estate to logistics and hospitality—clocked growth in the October-December period. Even Tech Mahindra Ltd., which has lagged top-tier peers for four quarters or so, has embarked on a turnaround under new CEO Mohit Joshi.

But it’s the flagship firm, Mahindra & Mahindra Ltd., that’s leading from the front.

Net profit of the Mumbai-based automaker rose 60.6% year-on-year to Rs 2,454 crore, on the back of revenue that grew 16% to Rs 25,642.4 crore in the three months ended Dec. 31, 2023, according to an exchange filing on Wednesday. Analysts polled by Bloomberg had estimated the top line at Rs 25,300.9 crore and the bottom line at Rs 2,375.6 crore.

M&M Q3 Results: Key Highlights (Standalone, YoY)

• Revenue up 16% at Rs 25,642.4 crore (Estimate: Rs 25,300.9 crore)

• EBITDA up 9.69% at Rs 3,590.3 crore (Estimate: Rs 3,208.3 crore)

• EBITDA margin down 80 bps at 14% (Estimate: 12.7%)

• Net profit up 60.6% at Rs 2,454 crore (Estimate: Rs 2,375.6 crore)

One basis point is one-hundredth of a percentage point.

In the SUV segment, M&M tops the leaderboard with a revenue market share of 21%. The company accounts for 49.5% of all light commercial vehicles sold in India. It is the market leader in tractors as well, commanding 41.8% of the farm equipment segment. Even in the electric three-wheeler space, M&M has 54% market share.

“Auto has clearly seen a lot of progress over the past few years… The products we have delivered are truly world-class and beating the competition hands down,” Shah told NDTV Profit. “That’s been a big plus for us.”

The next 18 months or so will see the Scorpio maker delve deep into the electric-vehicle space, with the unveiling of the “born electric” SUVs later this year and sales commencing early next year. As many as six electric SUVs will join XUV 4OO in the company’s EV line-up over the next two years or so.

“These cars are going to compete with the best in the world, and our hope is that they will move ahead of the best in the world as well,” Shah said. “I have test-driven three of them, they have come out really well, and we are looking forward to that launch.”

On Thursday, M&M shares surged to an intraday record high of Rs 1,783.80 apiece, before paring some of the gains to end the day 6.51% higher at Rs 1,765.55. That compares with the 0.32% rise in the benchmark Sensex to 72,050.38 points.