Mahindra & Mahindra Q1 Results Highlights: 5% Dip in Net Profit

On Wednesday, Mahindra & Mahindra Ltd. announced its financial results for the June quarter, showing a 5% drop in net profit to ₹2,613 crore. The company's revenue for the quarter increased by 12% to ₹27,039 crore.

Mahindra & Mahindra Q1 Results Highlights

On Wednesday, Mahindra & Mahindra Ltd. disclosed its June quarter financial results, revealing a 5% decrease in net profit to ₹2,613 crore, which fell short of the ₹2,683 crore anticipated by a CNBC-TV18 poll. The company's revenue for the quarter rose by 12% to ₹27,039 crore, also below the CNBC-TV18 poll expectation of ₹27,977 crore.

The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) showed a 22% increase from the previous year's quarter, reaching ₹4,023 crore, surpassing the expected ₹3,868 crore.

The EBITDA margin for the quarter expanded by 120 basis points year-over-year to 14.9%, exceeding the 13.8% forecast. This growth in margin was attributed to a favorable product mix.

During the quarter, Mahindra & Mahindra reported an 11% rise in volumes, totaling 3.33 lakh units. The automotive segment experienced a 13% increase in volumes from the previous year, while the tractors segment grew by nearly 6%.

The performance of Mahindra & Mahindra's various business segments during the June quarter is as follows:

•    The automotive segment saw a 13% year-over-year revenue increase to ₹18,947 crore.
•    The farm equipment segment reported a 9.8% rise in revenue, reaching ₹8,144 crore, up from ₹7,455 crore the previous year.
•    The automotive segment's EBIT margin increased to 9.5% from 7.7% last year.
•    The farm equipment segment's EBIT margin expanded by 100 basis points to 18.5% from 17.5% last year.
•    The company's market share in the LCV segment rose by 160 basis points during the June quarter to 50.9%, and its market share in the tractors business increased by 180 basis points to 44.7%.

Mahindra & Mahindra's SUV production capacity is expected to reach 64,000 units per month by the end of the financial year 2025, up from 49,000 units per month at the end of the financial year 2024. 

Following the earnings announcement, Mahindra & Mahindra shares have lost their earlier gains and are currently trading at ₹2,925. Despite this, the shares remain the top gainers on the Nifty 50 index for 2024, showing a 70% increase.

Mahindra & Mahindra Management Commentary

“We delivered robust margin expansion across our businesses through focused execution. We continue to meet our external commitments. We have also commenced our capital investment plans as communicated in May 2024," stated Group CFO Amarjyoti Barua.

About Mahindra & Mahindra

Mahindra & Mahindra Ltd (M&M), the flagship company of the Mahindra Group, operates as a diversified business enterprise. The company is active in numerous industries including automotive, aerospace, agri-business, aftermarket, information technology, consulting, components, clean energy, financial services, defense, real estate and infrastructure, industrial and construction equipment, two-wheelers, retail, steel, hospitality, IT services, automotive parts, aerostructures, boats, investments, and logistics.

M&M has manufacturing facilities in the US, France, Finland, India, Japan, Africa, China, and Australia, and it also runs research and development centers. The company has a presence in India, South Korea, Japan, Italy, and North America. M&M's headquarters are located in Mumbai, Maharashtra, India.