Mahindra Clocks 13 Pc Jump In Q2 Net Profit As SUV, Tractor Sales Surge
Date
11/7/2024 3:45:19 AM
(MENAFN- IANS) New Delhi, Nov 7 (IANS) Auto major Mahindra and Mahindra (M&M) on Thursday reported a 13 per cent rise in its standalone net profit for the July-September quarter at Rs 3,841 crore, driven by higher sales of SUVs and a revival in the demand for tractors.
M&M said its automobile segment, which produces the popular Thar and Scorpio SUVs, recorded the highest-ever quarterly volumes at 2,31,038 units in the quarter, up 9 per cent over the same period of the previous year.
The company's tractor sales during the quarter rose 4 per cent YoY to 92,382 units with its highest-ever Q2 market share at 42.5 per cent for the farm equipment segment.
M&M, India's market leader for tractors, reported a double-digit rise of 10 per cent revenue increase in the farm equipment segment. Its tractor sales rose 3.6 per cent as a good monsoon led to higher crop yields and incomes for farmers. Tractor sales have gone up for a second straight quarter, after a 7 per cent fall in 2023-2024 when erratic weather had hit the country's agricultural sector.
The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) shot 30 per cent to Rs 3,908 crore from Rs 2,993 crore during the second quarter, while the EBITDA margin improved by 190 basis points (bps) to 14.2 per cent from 12.3 per cent in the same quarter last year.
"In Q2 FY25, we gained market share across both our auto and tractor businesses. SUV volumes increased by 18 per cent year-on-year, maintaining leadership in revenue market share, with an increase of 190 bps YoY on the back of two successful launches. Volume market share for LCVs stands at 52.3 per cent, a rise of 260 bps YoY. The auto standalone PBIT margin was 9.5 per cent, a gain of 140 bps YoY," M&M Ltd's Executive Director & CEO, Auto and Farm Sector, Rajesh Jejurikar said.
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