Pune, India – February 7, 2025 – Mahindra & Mahindra (M&M), the Indian automotive giant, has announced a stellar 20% year-on-year increase in its consolidated net profit for the third quarter of the fiscal year 2024-25. This impressive performance, driven by robust growth in both its farm equipment and automotive sectors, underscores the company’s strong market position and successful strategic initiatives.
The company’s consolidated profit after tax (PAT) reached Rs 3,181 crore for the quarter ending December 31, 2024, compared to Rs 2,658 crore in the same period last year. This surge in profitability reflects the company’s ability to capitalize on market demand and operational efficiencies.
“Our businesses continue to demonstrate strength in execution,” said Anish Shah, Managing Director & CEO at M&M. “Auto and Farm delivered solid performance on market share and margins, on the back of focused execution. The transformation at TechM is gathering momentum.
Key Highlights of Q3 Performance:
- Consolidated PAT: Rs 3,181 crore, up 20% year-on-year
- Consolidated Revenue: Rs 41,470 crore, up 17% year-on-year
- Auto Segment Volumes: 245,000 units, up 16% year-on-year
- Tractor Segment Volumes: 121,000 units, up 20% year-on-year
Farm Equipment Sector Leads the Charge:
M&M’s farm equipment sector continued its strong growth trajectory, driven by favorable monsoon conditions and increased rural incomes. The company achieved its highest-ever Q3 tractor market share at 44.2%, a gain of 240 basis points year-on-year. This dominant position in the tractor market reflects M&M’s deep understanding of the agricultural sector and its ability to provide farmers with reliable and innovative products.
“In Q3 FY25, we were No. 1 in SUV revenue market share with 200 bps Y-o-Y increase,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector) at M&M. “We achieved the highest ever Q3 tractor market share at 44.2 per cent, a gain of 240 bps Y-o-Y.”
Automotive Segment Rides the SUV Wave:
The automotive segment also contributed significantly to M&M’s strong Q3 performance, with robust demand for its sport utility vehicles (SUVs). The company witnessed a 16% increase in overall auto volumes, driven by popular models like the XUV700 and Scorpio-N. M&M’s focus on innovative design, advanced technology, and customer-centric features has enabled it to maintain its competitive edge in the SUV market.
Financial Services and Technology Businesses Show Promise:
M&M’s financial services arm, Mahindra Financial Services, also delivered a strong performance, with its asset under management (AUM) growing by 19%. The company’s focus on asset quality and growth has enabled it to navigate the challenges in the financial services sector effectively.
Tech Mahindra, the company’s technology arm, is also undergoing a transformation, with a focus on improving EBIT margins and driving profitability. The company has witnessed a 480 basis point improvement in EBIT margins and a 93% increase in PAT, indicating that its strategic initiatives are yielding positive results.
Looking Ahead:
M&M’s strong Q3 performance positions it well for continued growth in the coming quarters. The company’s diversified portfolio, strong brands, and focus on innovation are expected to drive its success in both the domestic and international markets.
Challenges and Opportunities:
While M&M has delivered an impressive performance in Q3, the company acknowledges the challenges in the global economic environment, including rising input costs and supply chain disruptions. However, the company remains optimistic about its prospects, given the strong demand for its products and its ability to adapt to changing market conditions.
M&M’s focus on sustainable growth and its commitment to delivering value to its customers and stakeholders are expected to drive its long-term success. The company’s strong foundation, coupled with its strategic initiatives, positions it well to capitalize on the opportunities in the evolving automotive and farm equipment markets.
Note: This news article is based on the information available as of February 7, 2025. The financial results and other data mentioned in the article are subject to change.
