M&M Q2 Results: Revenue, Profit Surge Up To 13% On SUV Sales
M&M's SUV volumes increased by 18% YoY maintaining leadership in revenue market share.
Mahindra & Mahindra Ltd.'s profit clocked growth in the July-September quarter on the back of higher sales of SUVs. The standalone net profit of India’s largest SUV maker by revenue rose 13% over the year-ago period to Rs 3,841 crore in the three months ended Sept. 30, on the back of revenue that increased 12% to Rs 28,919 crore. The Scorpio maker reported a consolidated revenue of Rs 37,924 crore and consolidated net profit of Rs 3,361 crore.
Analysts polled by Bloomberg had estimated the top line at Rs 27,063 crore and the bottom line at Rs 3,564 crore.
M&M Q2 Results (Standalone, YoY)
Revenue up 12% at Rs 28,919 crore (Bloomberg estimate: Rs 27,063 crore).
Ebitda up 21% at Rs 5,270 crore (Bloomberg estimate: Rs 3,747 crore).
Ebitda margin up 130 basis points at 18.2% (Bloomberg estimate: 13.8%).
Net profit up 13% at Rs 3,841 crore (Bloomberg estimate: Rs 3,564 crore).
One basis point is one-hundredth of a percentage point.
The performance came on the back of highest-ever quarterly volumes of 231,000 units---up 9% year-on-year, according to a media statement. SUV sales were also at a record high of 136,000 units.
The company, at present, has an installed manufacturing capacity of 54,000 units/month---up 10% as on March 31.
Key Highlights
SUV market share rose 190 bps to 21.9%
LCV market share rose 260 bps to 52.3%
Tractor market share rose 90 bps to 42.5%
E3W market share at 43.6%
"In Q2 FY25, we gained market share across both our auto and tractor businesses," Rajesh Jejurikar, chief executive at Mahindra Auto, said in the statement.
"SUV volumes increased by 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on back of two successful launches," he said. "In our tractor business, we achieved our highest-ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY.”
