Thar, Scorpio manufacturer and one of India’s top auto OEMs, Mahindra & Mahindra delivered strong quarterly numbers for Q1FY25 and outlined plans for significant expansion in EV capacity by end of FY25. It reported smart 20% YoY uptick in Net Profit at Rs 3,283 crore from Rs 2,745 crore last year, same quarter. This is however excluding one-time gains last year on account of KG Mobility (Rs 405 crore) and the MCIE stake sale (Rs 358 crore). On a consolidated basis, the Net Profit is down 6% YoY from Rs 3,508 crore in Q1FY24.
SUVs, LCVs and tractors drive M&M’s Q1 revenue
The Q1FY25 revenue is up 10% Year-on-Year at Rs 37,218 crore from Rs 33,892 crore in Q1FY24. The primary drivers for revenue include higher SUV market share at 21.6%, up 130 bps with 24% jump in volumes. The market share of LCVs and tractors also saw significant growth contributing to the revenue gains.
Commenting on the company’s Q1 performance, Dr. Anish Shah, Managing Director & CEO, M&M said, “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 Tech Mahindra has commenced with margins as a key focus. With this momentum and relentless drive towards execution, we will continue to ‘deliver scale’ in FY25.”
Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M said, “In Q1FY25, 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.”
M&M SUV capacity up 3x in 4 years
A breakup of M&M’s auto business indicates that the SUV capacity is up 3x in 4 years coupled with strong margin performance. The FY25 capacity outlook includes 5000 units of 5-door Thar, XUV3XO/400 and the EV capacity is seen at 10,000. Additionally the company aims to add EV capacity by 8000 units by the end of FY26 and targets 3.5x EV capacity expansion by FY26 from FY20 levels.
M&M Q1 Tractor sales robust
After a rather muted FY24, the tractor sales have again begun to see green shoots of sorts. The Q1 tractor sales at 120,000, up 5% YoY clocked the highest ever quarterly volumes. Even exports at 4500 units were up 45% YoY for Q1. Overall market share is at 44.7% with 180 bps expansion year-on-year making it the key market player in tractors. The green shoots are not just indicative of demand revival but also the impact of additional government spending in rural areas and steady monsoon.
