M&M Q1 profit drops 5% to ₹2,613 crore

Standalone net profit of Mahindra & Mahindra (M&M) fell 5% year-on-year to ₹2,613 crore for the quarter ended June compared with ₹2,759 crore in the same quarter last year.

Revenue from operations jumped 12% year-on-year to ₹27,039 crore in the first quarter as against ₹24,137 crore in the same quarter a year ago.

On a consolidated basis, M&M’s profit dropped 6% to ₹3,283 crore in Q1 FY25.

Farm and auto continue on a very strong operating track. SUV market share up 130 basis points, LCV up 160 basis points. Tractors up 180 basis points.

The automaker clocked highest ever first quarter volumes at 212,000 units, up 14% year-on-year. Consolidated revenue from the auto business rose 16% ₹19,776 crore while profit jumped 35% to ₹1,330 crore. Auto margins rose to 9.5% in Q1 FY25 from 7.7% in Q1 FY24. The company has tripled auto capacity in the last four years.

Consolidated profit from Auto and Farm businesses rose 18% year-on-year to ₹2,568 crore.

“We have started the F25 fiscal year with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins. Transformation at MMFSL is yielding results as asset quality improves and transformation at TechM has commenced with margins as a key focus. With this momentum and relentless drive towards execution, we will continue to ‘deliver scale’ in F25,” says Anish Shah, managing director and CEO, M&M.

“In Q1 F25, we gained market share in both Auto & Farm businesses. We achieved highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY. We retained market leadership in SUVs with 21.6% revenue market share and in LCVs < 3.5T, we crossed 50.9% volume market share. Auto Standalone PBIT grew by 39% with margin improvement of 180 bps YoY,” says Rajesh Jejurikar, executive director and CEO of Auto and Farm at M&M.

In the last mile mobility segment, EV penetration is 20%, Jejurikar adds.

“We delivered robust margin expansion across our businesses through focussed execution. We continue to meet our external commitments. We have also commenced on our capital investment plans in line with what we communicated in May’24,” says Amarjyoti Barua, group chief financial officer, M&M.

On any possible partnership with German carmaker Volkswagen, Shah says “while there are lots of rumours around, at any point if there is a solid reason to do partnership that benefits Mahindra & Mahindra, that’s something we would look at.”