Mahindra & Mahindra Limited has announced its financial results for the second quarter (Q2) and the half-year ending September 30, 2024. The company reported a consolidated profit after tax (PAT) of ₹3,171 crore for Q2, reflecting a 35% year-over-year increase from ₹2,348 crore in Q2 of the previous year. Consolidated revenue for the quarter rose 10% to ₹37,924 crore from ₹34,436 crore in Q2 of FY24.
Key Financial and Operational Highlights
- Automotive Segment: The automotive division achieved its highest-ever quarterly volume with 231,000 vehicles sold, a 9% increase year-over-year. The segment’s consolidated revenue reached ₹21,755 crore, marking a 15% rise. The division reported a profit before interest and tax (PBIT) of ₹2,006 crore, up 34% year-over-year, with a PBIT margin improvement of 140 basis points to 9.5%.
- Farm Equipment: In its farm equipment business, Mahindra reached a market share of 42.5%, with 92,000 units sold, a 4% increase from the same quarter last year. Revenue for the farm segment was ₹8,194 crore, slightly down by 2% from Q2 FY24. However, the division’s PBIT stood at ₹1,136 crore, marking a 20% increase.
- Financial Services: Mahindra Financial Services Limited (MMFSL) saw a 20% growth in its assets under management (AUM). The division’s standalone PAT increased by 57%, with a reduction in gross stage 3 (GS3) to 3.8%.
- Technology and Other Services: Tech Mahindra reported an EBIT margin improvement of 490 basis points, supported by performance in the banking, financial services, and insurance sectors. The consolidated PAT for the services division rose by 1.8 times compared to Q2 FY24.
Six-Month Summary
For the first half of FY25, Mahindra reported a consolidated revenue of ₹75,141 crore, a 10% increase compared to the previous year. The cumulative PAT for this period reached ₹6,453 crore, up from ₹5,856 crore. The company’s return on equity (RoE) for H1 FY25 stood at 18.9%.
Leadership Remarks
Commenting on the quarterly performance, Anish Shah, Managing Director and CEO, highlighted the company’s continued growth in market share within the auto and farm sectors, alongside improved operational efficiency in financial services. Rajesh Jejurikar, CEO of the Auto and Farm sector, noted that the increase in SUV and tractor market share, along with expanded production capacity, supported the growth trajectory.