Mahindra & Mahindra Group has posted financial results for Q2 and H1 F24, showcasing significant growth in profit and asserting dominance across its key sectors. Standalone Profit After Tax (PAT) surged by an impressive 67%, reaching INR 3,452 crore. The consolidated PAT witnessed a 6% increase, excluding the previous year's Swaraj Engines Ltd (SEL) revaluation gain. The first half of the fiscal year demonstrated strength, with standalone PAT rising by 79% and consolidated PAT climbing by 33% (excluding SEL). The Return on Equity (RoE) stood at 20%.
Key highlights include a 28% increase in SUV revenue, securing a market share of 19.9%, reflecting a robust growth of 90 basis points. The company emerged as the leader in Light Commercial Vehicles (LCVs) under 3.5 tonnes, capturing a market share of 49.6%, a substantial growth of 280 basis points over the last five years. In the tractor segment, Mahindra & Mahindra maintained its dominance with a market share of 41.6%, up by 150 basis points.
The electric three-wheeler segment witnessed a staggering 74% surge in volumes, solidifying the company's leading position with a market share of 61.1%. Standalone PAT reached INR 3,452 crore, a remarkable 67% increase, while consolidated revenue for Q2 reached INR 34,436 crore, marking a 15% growth. For H1 F24, consolidated PAT was INR 2,348 crore, up 6% (excluding SEL).
The Auto sector achieved its highest-ever quarterly volumes at 212k, marking an 18% increase. Notably, open bookings for SUVs reached 286k, underlining sustained strong demand. Electric three-wheeler volumes surged by 74%, contributing to a standalone Profit Before Interest and Taxes (PBIT) of INR 1,452 crore, up by 64%.
The Farm sector maintained resilience, securing a tractor market share of 41.6%, the highest in a decade. The launch of Oja and Naya Swaraj added momentum, with farm machinery revenue reaching INR 223 crore, a 35% increase.
In Services, despite challenges faced by Tech Mahindra (TechM), growth gems such as Mahindra Lifespaces, Club Mahindra, and Mahindra Logistics reported positive outcomes. The consolidated PAT for Q2 was INR 533 crore, down 37%, while H1 PAT reached INR 1,601 crore, up 1%.
Dr Anish Shah, Managing Director & CEO of M&M Ltd, expressed satisfaction with the robust performance across sectors, emphasizing the ongoing transformation journey, while Mr Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), highlighted the steadfast market share growth and successful product launches. Mr Manoj Bhat, Group Chief Financial Officer, emphasized a strong focus on operational metrics and value creation, resulting in a RoE exceeding 18%.
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