M&M net profit zooms 34% to ~2.6K cr in Q3

Mahindra and Mahindra (M&M) on Wednesday reported a 34 per cent year-on-year (Y-O-Y) rise in consolidated net profit to ~2,658 crore (excluding previous year gains on Susten and trucks impairment) for the December quarter of 2023-24.

Including the previous year's gains, the profit after tax (PAT) dipped 1 per cent.

The consolidated revenues have also grown 15 per cent to touch ~35,299 crore.

The company’s stock gained close to one per cent on the BSE on Wednesday.

M&M said the group delivered ‘solid’ operating performance across all business verticals except Tech Mahindra.

The automotive business continues to gain market share, and the farm market share has improved despite a decline in the industry. Auto Q3FY24 volumes came in at 211,000 units, up 20 per cent, and the company achieved its highest ever utility vehicle volumes of 119,000 units.

It now has a revenue market share of 21 per cent, up 40 basis points (bps), and secured the pole position in the SUV space.

Rajesh Jejurikar, executive director and chief executive officer (auto and farm sector), M&M said: “We had a strong quarter for auto and farm businesses. We were number 1 in SUVS with a revenue market share of 21 per cent in Q3 while further improving our auto standalone PBIT margins.”

He added: “We increased tractor market share by 80 bps to 41.8 per cent in Q3 even as the tractor industry contracted on the back of last year’s high base, weather vagaries, and lower reservoir levels. Our E-3W business is maintaining its market leadership with a Q3 market share of 54 per cent and YTD market share of 59.5 per cent.” The automotive business has open bookings of 226,000 (as of February 1), and average monthly bookings are around 50,000 units.

Auto consolidated revenue came in at ~19,380 crore, up 26 per cent, while the auto business PAT was at ~1,201 crore, up 2.5 times (excluding last year’s trucks impairment). The farm segment gained tractor market share by 80 bps to 41.8 per cent – its highest third-quarter market share since FY19. Farm machinery revenue was up 28 per cent to ~221 crore.

The consolidated farm revenues were flat at ~8,600 crore, and Q3 PAT was down 4 per cent to ~898 crore for the farm business. In the services businesses, M&M Financial Services PAT was down 12 per cent due to a write-back last year.

Tech Mahindra revenues was down 5 per cent and PAT down 61 per cent during the quarter due to a muted demand cycle.