Mumbai Mahindra & Mahindra on Wednesday said its consolidated net profit rose 20 per cent to Rs 3,283 crore in the April-June quarter of the current financial year.
The Mumbai-based company had reported a profit after tax (PAT) of Rs 2,745 crore in the year-ago period.
Revenue rose 10 percent year-on-year to Rs 37,218 crore compared to Rs 33,892 crore in the June quarter of last fiscal, the company said. The company, in a statement, clarified that "there is a 20 percent profit." percent in operating profits for Q1FY25. The reported PAT drop is due to two one-time gains last year.”
"We made a profit of Rs 405 million on our investment in KG Mobility at the time of share listing and recorded a profit on the sale of our stake in MCIE for Rs 358 million. These figures, which add up to Rs 763 million rupees, - are not repeated in this year's (Q1 FY25) figures," he said.
"We entered FY25 with strong operational performance across all our businesses. Leveraging leadership positions, the automotive and agriculture sectors continued to expand market share and profit margins," said Anish Shah, Managing Director and CEO of Mahindra & Mahindra."The transformation at MMFSL ((Mahindra & Mahindra Financial Services Limited) is delivering results as asset quality improves and the transformation at TechM has begun with margins as a key focus," he added.
"With this momentum and a relentless drive towards execution, we will continue to 'deliver scale' in FY25," Shah said.
Shah said both the automotive and agriculture sectors continued on a very strong operating trajectory and beyond market share gains, the company also plans to continue margin expansion.Beyond market share gains , the company has tripled its SUV capacity in the last four years, which has helped it meet lagging demand and also be more aggressive in the market, Shah said.
In a tough market, Mahindra Finance is unlocking its potential and starting to see results, he said, adding that the company is halfway to its three-year turnaround as previously planned.
Apart from asset quality and growth, technology is a key part of the recovery, he added. Tech Mahindra's recovery has also begun. The first quarter (performance) is on track. "And we will carry out a two- to three-year turnaround plan there and see continued results, as we expect, quarter on quarter," Shah said.
According to Shah, Mahindra Logistics is on a better path now, although it is not completely out of the woods yet.
"It is performing much better and the express business is now making losses. This quarter is in a very good...we expect the business to recover towards the end of the current quarter," Shah said. The company said it recorded the highest volumes highs in the first quarter at around 2.12 lakh units, up 14 per cent year-on-year, and the utility vehicle segment also recorded the highest volumes in the first quarter at 1.24 lakh units.
The company said it also increased the capacity of the SUV portfolio from 18,000 to 49,000 units.
"In Q1 FY25, we gained market share in both the automotive and agricultural businesses. We achieved our highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY," said Rajesh Jejurikar, CEO & CEO (Auto & Farm). Sector), M&M Ltd.Said the company maintained market leadership in SUVs with a revenue market share of 21.6 percent, and in light commercial vehicles in the category of less than 3.5 tons, it surpassed the 50.9 percent volume market share.
Jejurikar also said that the company wants the waiting periods to be as short as possible and that is the reason for increasing the capacity to 49,000 units.
In the agriculture sector business, M&M said tractor volumes rose 5 per cent to 1.20 lakh units. The outlook for the monsoon is also "positive", and has been quite good in most parts of the country. And most critical markets have performed positively, especially the west and south, while there is better government spending at both the state and central levels on agriculture, among others.
"We achieved strong margin expansion across our businesses through focused execution. We continue to deliver on our external commitments," said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.
"We have also started our capital investment plans in line with what we communicated in May 2024," he said. Responding to a question on whether M&M has plans to collaborate with Volkswagen, which is looking for local partners to grow in the Indian market , Shah said the company already has an electric mobility supply pact, "and that is a good relationship."
"I would say that at any time with any of our businesses, if there is a strong reason to make a partnership that benefits us, then that is something we would consider," he added.
The Mumbai-based company had reported a profit after tax (PAT) of Rs 2,745 crore in the year-ago period.
Revenue rose 10 percent year-on-year to Rs 37,218 crore compared to Rs 33,892 crore in the June quarter of last fiscal, the company said. The company, in a statement, clarified that "there is a 20 percent profit." percent in operating profits for Q1FY25. The reported PAT drop is due to two one-time gains last year.”
"We made a profit of Rs 405 million on our investment in KG Mobility at the time of share listing and recorded a profit on the sale of our stake in MCIE for Rs 358 million. These figures, which add up to Rs 763 million rupees, - are not repeated in this year's (Q1 FY25) figures," he said.
"We entered FY25 with strong operational performance across all our businesses. Leveraging leadership positions, the automotive and agriculture sectors continued to expand market share and profit margins," said Anish Shah, Managing Director and CEO of Mahindra & Mahindra."The transformation at MMFSL ((Mahindra & Mahindra Financial Services Limited) is delivering results as asset quality improves and the transformation at TechM has begun with margins as a key focus," he added.
"With this momentum and a relentless drive towards execution, we will continue to 'deliver scale' in FY25," Shah said.
Shah said both the automotive and agriculture sectors continued on a very strong operating trajectory and beyond market share gains, the company also plans to continue margin expansion.Beyond market share gains , the company has tripled its SUV capacity in the last four years, which has helped it meet lagging demand and also be more aggressive in the market, Shah said.
In a tough market, Mahindra Finance is unlocking its potential and starting to see results, he said, adding that the company is halfway to its three-year turnaround as previously planned.
Apart from asset quality and growth, technology is a key part of the recovery, he added. Tech Mahindra's recovery has also begun. The first quarter (performance) is on track. "And we will carry out a two- to three-year turnaround plan there and see continued results, as we expect, quarter on quarter," Shah said.
According to Shah, Mahindra Logistics is on a better path now, although it is not completely out of the woods yet.
"It is performing much better and the express business is now making losses. This quarter is in a very good...we expect the business to recover towards the end of the current quarter," Shah said. The company said it recorded the highest volumes highs in the first quarter at around 2.12 lakh units, up 14 per cent year-on-year, and the utility vehicle segment also recorded the highest volumes in the first quarter at 1.24 lakh units.
The company said it also increased the capacity of the SUV portfolio from 18,000 to 49,000 units.
"In Q1 FY25, we gained market share in both the automotive and agricultural businesses. We achieved our highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY," said Rajesh Jejurikar, CEO & CEO (Auto & Farm). Sector), M&M Ltd.Said the company maintained market leadership in SUVs with a revenue market share of 21.6 percent, and in light commercial vehicles in the category of less than 3.5 tons, it surpassed the 50.9 percent volume market share.
Jejurikar also said that the company wants the waiting periods to be as short as possible and that is the reason for increasing the capacity to 49,000 units.
In the agriculture sector business, M&M said tractor volumes rose 5 per cent to 1.20 lakh units. The outlook for the monsoon is also "positive", and has been quite good in most parts of the country. And most critical markets have performed positively, especially the west and south, while there is better government spending at both the state and central levels on agriculture, among others.
"We achieved strong margin expansion across our businesses through focused execution. We continue to deliver on our external commitments," said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.
"We have also started our capital investment plans in line with what we communicated in May 2024," he said. Responding to a question on whether M&M has plans to collaborate with Volkswagen, which is looking for local partners to grow in the Indian market , Shah said the company already has an electric mobility supply pact, "and that is a good relationship."
"I would say that at any time with any of our businesses, if there is a strong reason to make a partnership that benefits us, then that is something we would consider," he added.
