Mahindra & Mahindra has announced its quarterly results for Oct-Dec 2024. Here are live updates from its press conference.
- M&M: Expect tractor industry to grow over 15% in Jan-Mar
- Domestic market is doing well, expect strength to continue
- International operations are weak due to macro headwinds
- Expect to reach certain decisions on Int'l business in Q4
- To carve out contract manufacturing of e-SUVs from auto financials
- Fundamentals for Indian economy strong; relief in income tax to drive growth
- Effect of income tax relief to increase XUV 3XO traction
- Expect demand to be robust in Rs 10-25 lakh auto segment
- There is raw material inflation; steel remains benign, but other raw material prices creeping up
- 30% of the volume for Thar is for three-door, remaining for 5-door
- Urban and rural growth is similar for us, unlike for some others for whom rural has outperformed
- Current inventory at 30 days
- EV bookings to be available at 250+ dealerships at the beginning
- Increased prices of XUV700 and 3X0 during the quarter, helping margins
- Dealers offering discounts on 2024 inventory
- Anti-dumping measures should not lead to higher steel prices, hope govt will keep this in mind
- We have specific product lines to de-bottleneck. Need to increase capacities in 3XO and ROXX. These will be small incremental capacities added over the next six months.
- Selling 700+ 3XO in South Africa, selling more than 1200 vehicles per month in South Africa
- M&M: Expect tractor sales in US to pick up in Apr-Jun quarter
- MHCV sales muted: expected to pick up with infra development
The company reported a strong third quarter of FY25, with consolidated profit after tax rising 20% to Rs 3,181 crore, driven by strong showing across its automotive, farm equipment, and services businesses.
The Mumbai-based conglomerate saw its consolidated revenue grow 17% year-on-year to Rs 41,470 crore. The company strengthened its grip on the SUV market with a revenue market share of 23%, up 200 basis points, while SUV volumes surged 20% during the quarter.
The automotive division emerged as a key growth driver, with quarterly volumes reaching 245,499 units, up 16% year-on-year. The segment's standalone PBIT (Profit Before Interest and Tax) jumped 37% to Rs 2,167 crore on a standalone basis, with margins expanding 120 basis points to 9.7%.
In the farm equipment sector, M&M achieved its highest-ever Q3 market share of 44.2%, with volumes growing 20% to 120,624 units. The segment's standalone PBIT rose 42% to Rs 1,479 crore, while margins improved significantly by 260 basis points to 18.1%.