Mahindra and Mahindra reported a 20 per cent rise in consolidated net profit at ₹3,283 crore for the quarter that ended in June against ₹2,745 crore reported during the same quarter last year. However, profit fell 5.3 per cent year-over-year, including exceptional items.

“There is a 20 per cent gain in operational profits for the first quarter of FY25. The reported PAT drop is on account of two one-off gains last year; we had a gain of ₹405 crore on our KG Mobility investment at the time of listing of the stock and we recorded a gain on the sale of our stake in MCIE for the ₹358 crore. These numbers – adding up to ₹763 crore - are not repeated in this year’s [Q1 FY25] numbers,” the company said in a statement.

Revenue from operations of the company saw an uptick of 10.78 per cent, to ₹37,010 crore in the June quarter, compared to ₹33,406 crore reported during the same time last year. A 4.64 per cent increase in profit from the March quarter was witnessed, at ₹3,573 crore.

“We have started the F25 fiscal year with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins. Transformation at MMFSL is yielding results as asset quality improved and transformation at TechM has commenced with margins as a key focus. With this momentum and relentless drive towards execution, we will continue to ‘deliver scale’ in F25,” said Anish Shah, Managing Director & CEO of M&M.

Within the auto vertical, SUV volume was up by 24 per cent with a market share of 21.6 per cent. In the farm segment, the domestic industry witnessed a positive outlook with the company’s market share of 44.7 per cent. The electric vehicle penetration was at 20 per cent.

The company plans to increase SUV capacity to 5,000 units and electric vehicle capacity to 10,000 units by FY25 F25 exit and an additional 8,000 electric vehicle capacity by FY 26 F26 end.

“In Q1 F25, we gained market share in both Auto & Farm businesses. We achieved the highest-ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY. We retained market leadership in SUVs with 21.6 per cent revenue market share and in LCVs < 3.5T, we crossed 50.9 per cent volume market share. Auto Standalone PBIT grew by 39 per cent with margin improvement of 180 bps YoY,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.

“We are seeing green shoots in the tractor segment with positive monsoon outlook, price realisation which is favourable for farmers, the improved spending from the Government of India in the rural sector and the start of Navratra in H2 F25,” added Jejurikar.

Hybrid cars

The company stated it has no immediate plans to introduce hybrid cars, “If there is a consumer demand for hybrid cars then we can get that as well. The electric vehicles pickup will be favourable,” added Anish Shah.

“We are excited about the future, our ambitious investment plan of 3.7 billion rupees over the next three years is a testament to our commitment to growth and innovation. While we continue to invest in building manufacturing capacity, we must also be aware of the important role the private sector plays in job creation. We expanded our global footprint with the “Mahindra Futurescape” vision, showcasing the Thar.e and our Global Pik Up vehicle concepts. It is an exciting chapter in our global journey, and we are committed to expanding our reach and impact worldwide. In the Electric Vehicles space, we continue to be pioneers in India. At the close of the financial year, we achieved the significant milestone, crossing 4 million tractors sold. This landmark was fittingly celebrated with the introduction of the Mahindra Yuvo Tech Plus, a model built on our next-generation Yuvo tractor platform at our Zaheerabad facility. On the international front, the OJA tractor family and its rapid ramp-up positions us to tap into 25 per cent of the global tractor industry and explore new markets in Europe and ASEAN,” said Anand Mahindra, Chairman, Mahindra Group at the company’s 78th AGM.

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