In This Article:
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Auto Volume Growth: 16% increase.
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SUV Market Share: Increased by 200 basis points to 23%.
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Farm Volume Growth: 20% increase.
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Farm Market Share: Increased by 240 basis points to 44.2%.
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Auto Margin: 9.7%.
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Farm Margin: 18.1%.
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Mahindra Finance PAT Growth: 47% increase.
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Assets Under Management: Up 19%.
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Consolidated Profit After Tax Growth: 20% increase.
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Revenue Growth: 17% for the quarter, 13% year to date.
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LCB Market Share: 51.9%, up 230 basis points.
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Farm Revenue Growth: 12% increase.
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Hospitality Occupancy Rate: 84%.
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Average Unit Realization Increase: 37%.
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ROE: Around 18%.
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EPS Growth: Ahead of 15% to 20% target from F21 onwards.
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Auto Consolidated Revenue Growth: 21% increase.
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Farm Consolidated Revenue Growth: 11% increase.
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Auto Stand-alone Margin: 9.7%, up 1.2 share points.
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Farm Core Tractor Margin: 19.5%, up 2.6 points.
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Services Franchise Profit Growth: 33% increase.
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Mark to Market Impact: Significant impact from KG Mobility investment.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mahindra & Mahindra Ltd (MAHMF) reported a 20% growth in profit after tax on a consolidated basis, with a consistent 20% year-to-date growth.
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The Auto segment saw a 16% increase in volume, with SUV market share rising by 200 basis points to 23%.
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Farm business volumes grew by 20%, with market share increasing by 240 basis points to 44.2%, marking the highest ever Q3 market share.
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Mahindra Finance's profit after tax increased by 47%, with assets under management up 19%.
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Tech Mahindra is on a margin recovery path with new deal wins in telecom and green shoots in BFSI and healthcare sectors.
Negative Points
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International Farm business faced challenges due to macroeconomic factors, resulting in lower-than-desired revenue growth of 12%.
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The Auto segment's standalone margin of 9.7% is impacted by the high value of EV contract manufacturing transactions.
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The LCV segment, particularly in the lower tonnage category, has not seen significant recovery, with only low single-digit growth.
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Mahindra & Mahindra Ltd (MAHMF) faced a mark-to-market impact from its investment in KG Mobility, affecting overall profitability.
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The company is cautious about the fast ramp-up of EV production to ensure quality, which may limit initial sales volumes.
Q & A Highlights
Q: What are the learnings from the EV test drives, and are there any areas for improvement in customer or dealer education? A: Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector, explained that the strategy was to create aspirational products that break barriers, such as range anxiety and battery warranty concerns. The positive response has led to an expansion of the initial launch plan to include more cities. The company is conducting charging audits for prospects to ensure readiness at delivery.