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Mahindra & Mahindra Ltd (M&M) reported 35% growth in consolidated net profit at ₹3,171 crore for the second quarter ended September 30, 2024, as compared with ₹2,348 crore in the year-ago period due to strong performance of all its businesses.
The company, consolidated revenue for the period grew 10% to ₹37,924 crore Year on Year (YoY).
Auto and Farm businesses delivered operating results with profits up 23%. Financial services’ Asset Under Management grew by 20%.
Tech Mahindra showed good traction in BFSI and there was EBIT improvement of 490 bps. Services business delivered 1.8 times net profit as compared to the year ago period, the company said.
The auto business witnessed the highest quarterly volumes at 231000 units, up 9%. Utility Vehicles quarterly volumes reached 136000 units.
The auto business reported a 40% growth in consolidated net profit at ₹1.423 crore on consolidated revenues of ₹21,755 crore, up 15% YoY.
The consolidated revenue of the firm business was down 2% to ₹8,194 crore. The Farm business reported a consolidated net profit of ₹800 crore which remained flat YoY due to macro headwinds in international farm markets.
Anish Shah, Managing Director & CEO, M&M Ltd. said, “Our businesses have delivered a solid operating performance this quarter. Auto and Farm continued to strengthen market leadership by gaining market share and expanding margins.
He said the end losses at Mahindra & Mahindra Financial Services have improved structurally and Tech Mahindra delivered a good quarter and the long-term focus remains on reverting to past profitability.
“Our growth gems are progressing well,” he added.
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, “In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased by 18% YoY, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches.”
“Volume market share for LCVs stands at 52.3%, a rise of 260 bps YoY. In our tractor business, we achieved our highest-ever Q2 market share at 42.5%, with standalone margins up by 150 bps YoY,” he added.
Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd. said, “While the Auto and Farm segments continue to deliver the strong performance we have come to expect of them, this quarter also reflected the strength of our Services portfolio. This has been the trend through H1 F25 and we expect it to continue for the rest of the year in line with our strategy.”
Published – November 07, 2024 01:54 pm IST