Mahindra & Mahindra (M&M) recorded a standalone net profit of ₹2,612.63 crore for the first quarter of FY25, a 5.3% decrease from ₹2,759.43 crore in the previous year period.
In Q1FY25, M&M’s revenue from operations grew by 12% to ₹27,038.79 crore from ₹24,137.19 crore year on year. The automaker increased market share and expanded margins in both the auto and farm segments.
“We have started the F25 fiscal year with solid operating performance across all of our companies. Auto and Farm continued to grow market share and profit margins by capitalizing on their leadership positions,” said Anish Shah, Managing Director & CEO of M&M Ltd.
In the June 2024 quarter, profits before interest, taxes, depreciation, and amortization (EBITDA) climbed by 22% to ₹4,023 crore from ₹3,286 crore year on year. EBITDA margin increased by 130 basis points (bps) to 14.9%, up from 13.6% year on year.
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector) of M&M Ltd., reported that in Q1 FY25, the company saw growth in market share in both the automotive and agricultural sectors. They achieved their highest-ever quarterly tractor volumes and improved the PBIT margin for Core Tractors by 110 basis points compared to the previous year. M&M maintained its market leadership in SUVs, securing a 21.6% revenue market share, and reached a 50.9% volume market share in light commercial vehicles (LCVs) under 3.5 tons. The Auto Standalone PBIT saw a 39% year-over-year increase, with a margin enhancement of 180 basis points.
Results for the M&M auto segment
In Q1FY24, M&M’s vehicle segment revenue increased by 13% to ₹18,947.09 crore from ₹16,753.88 crore year on year. The segment’s EBIT increased 39% YoY to ₹1,798.32 crore, while the EBIT margin improved to 9.5% from 7.7% YoY.
Mahindra sold 2,11,550 automobiles in the June quarter, a 14% increase from the same time last fiscal year.
Results for the M&M farm equipment segment
M&M’s Farm Equipment division revenue increased by 9% YoY to ₹8,144.15 crore. EBIT increased by 16% to ₹1,505.81 crore, while EBIT margin increased to 18.5% from 17.5% YoY.
The company’s tractor sales increased 5% to 1,20,492 units during the quarter, up from 1,14,293 units the previous year. This was the company’s highest-ever quarterly tractor volume.
At 1:25 pm, M&M shares were trading 1.07% higher on the BSE at ₹2,952.75 each.
Mahindra & Mahindra (M&M) is a significant Indian multinational company with a diversified business portfolio, particularly in the automotive and farm equipment sectors. The firm, based in Mumbai, Maharashtra, was founded in 1945. It works in a variety of industries, including automotive, agricultural, aerospace, banking, hospitality, and real estate.
Key Business Segments:
- Automotive: M&M is one of India’s leading automakers, producing a diverse range of cars such as SUVs, commercial vehicles, and electric vehicles. The Scorpio, Bolero, and Thar are among the company’s best-known vehicles.
- Farm Equipment: M&M is a multinational tractor manufacturer that produces a wide range of agricultural equipment. The company works under the Mahindra Tractors brand and has a substantial market presence in India and other nations.
- Financial Services: Mahindra Finance, the company’s subsidiary, provides financial services such as automobile loans, insurance, and investment goods.
- M&M has a foothold in the technology sector through Tech Mahindra, an IT services and consultancy firm.
- Other Businesses: The company has holdings in aerospace, defense, hotel, real estate, and agriculture.
Latest Performance and Strategic Initiatives
M&M has been working on extending its product line, particularly in the electric car category, as well as increasing its global presence. The corporation has also invested in R&D to drive innovation in fields such as sustainable farming and smart mobility.
Global presence
M&M is active in over 100 countries, with a strong presence in North America, Europe, Asia, and Africa. The company’s global strategy includes acquiring and cooperating with other enterprises to broaden its market reach and technological capabilities.
Corporate Social Responsibility (CSR)
M&M is actively committed to corporate social responsibility projects, with an emphasis on education, healthcare, the environment, and community development. Through numerous programs and activities, the corporation hopes to make a good difference in society and the environment.
Is it a good idea to buy M&M shares?
Mahindra & Mahindra’s trailing twelve-month (TTM) price-to-earnings (P/E) ratio stands at 19.00, which is lower than the sector’s average P/E of 21.97. Currently, 37 analysts are tracking the stock. Of these, twelve analysts have issued a strong buy recommendation, twenty-one have rated it a buy and just one analyst has given it a sell rating.
What is the full name of M&M Mahindra?
Mahindra and Mahindra In 1945, the brothers J. C. Mahindra and K. C. Mahindra, along with Malik Ghulam Muhammad, founded Mahindra & Mohammed to trade steel in Ludhiana, Punjab.
Why is M&M’s stock falling?
Mahindra & Mahindra (M&M) shares plummeted more than 6% on Wednesday to a day’s low of Rs 2,737 on the BSE, following news that the automaker had slashed the price of its tiny crossover SUV, the XUV700. While a price drop would have a modest negative impact on M&M’s earnings, analysts view it as an indication of waning demand.
What is the future outlook for M&M stock?
M&M’s Share Price Target for 2030 is expected to remain between Rs 3,183 and Rs 2,310. What is the NSE M&M Share Price Target for 2024? M&M’s share price target for 2024 is between Rs 1,985 and Rs 1,600.
