Mahindra & Mahindra Ltd. reported first-quarter consolidated net profit declined 6% to ₹3,283 crore from ₹3,508 crore in the year-earlier period. “There is a 20% gain in operating profit for the first quarter,” the company said in a statement. “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 sale of our stake in MCIE for ₹358 crore. These numbers adding to ₹763 crore are not repeated in this quarter’s numbers,” M&M said.
Consolidated revenue for the quarter ended June 30, 2024 increased 10% to ₹37,218 crore from the year-eariler period.
The company, on a standalone basis, reported a 5% drop in net profit to ₹2,613 crore over the year-earlier period. During the quarter, auto business reported 14% growth in sales at 2.11,550 units. Tractor sales increased 5% to 1,20,492 units as compared with 1,14,293 units in the year-earlier period.
Anish Shah, Managing Director & CEO, M&M Ltd. said, “We have started the 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 improves 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 FY25,” he said. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, “In Q1 FY25, we gained market share in both Auto & Farm businesses. We achieved 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% revenue market share and in LCVs 3.5T, we crossed 50.9% volume market share. Auto Standalone PBIT grew by 39% with margin improvement of 180 bps YoY,” he added.
Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd. said, “We delivered robust margin expansion across our businesses through focussed execution. We continue to meet our external commitments. We have also commenced on our capital investment plans in line with what we communicated in May 2024.”
Published - July 31, 2024 08:27 pm IST
