M&M's Revenue Will Grow 15% In H2 Against Industry's 7%, Says CFO Amarjyoti Barua

Mahindra & Mahindra Ltd. expects to continue strong growth across its farm and auto sector in the upcoming two quarters, said Amarjyoti Barua, President and Group Chief Financial Officer of the Mahindra Group.

For the second quarter of the current financial year, M&M's net profit has risen 13% year-on-year to Rs 3,841 crore.

Revenue rose 12% YoY to Rs 28,919 crore while Ebitda jumped 21% YoY to Rs 5,270 crore. The company reported its highest-ever quarterly volumes in Q2 at 2,31,000 units, up by 9% YoY.

According to Barua, the company plans to build on the Q2 momentum in the upcoming quarter of the financial year 2024–25 and clock a growth in the range of 13–15%.

While acknowledging that the Scorpio manufacturer had experienced some constraints in the SUV production in the second quarter of FY25, he asserted that phase is over. “Now that the constraint is out of the picture and us having 54,000 production capacity, we should be in a good spot for the second half as well because we have very strong launches,” Barua told NDTV Profit.

According to him, Mahindra SUVs like Thar Roxx and 3XO are doing well, which has further boosted the automaker's confidence for a better H2.

“Thar Roxx has done very well. The 3XO continues to do well, and then the XUV 700 is back as well. There is some stress in the Bolero market, for example. I think the momentum of these brands will carry, and Scorpio has continued to be a strong dark horse. That's what gives us confidence that auto will also (do well),” the automobile major's Group CFO said.

Barua predicted that the company is likely to achieve a growth of around 13–15% in the second half of FY25. “That (13%-15% growth in H2) is the guidance we gave, which is why based on that 0.6% in the first half, we believe that 6–7% is where the industry is going to be (in H2).”

Barua noted that good monsoon-driven full reservoirs and fair MSPs have driven rural growth in the first half, and the momentum is likely to continue.

“October was really good for the farm segment. It's taken up our (market) share to about 43%. I think what's going to happen is there is going to be more competitive intensity in the second half as people do come out, now that some of the traction is back in the market,” he explained.

“Everybody is going to be more aggressive. We hope to maintain that share, but there's always a little bit of plus and minus that you're going to have to deal with,” the top executive added.

He said that the company expects to improve its H2 performance in the farm segment compared to last year.

Shares of M&M Ltd. rose 1.79% to clock an intraday high of Rs 2,943 apiece on the NSE at around 12:40 pm. In contrast, the benchmark Nifty 50 was seen trading 0.24% lower at 24,140.85 at the time.

The stock closed 2.4% higher at Rs 2,960.6 apiece on the NSE against the benchmark Nifty 50's decline of 0.21%.