Mahindra & Mahindra’s Impressive Growth in Q2 FY25
Mahindra & Mahindra Limited (M&M), a leading Indian company in SUVs, light commercial vehicles, tractors, and electric three-wheelers, reported significant growth in the second quarter of Financial Year 2025. The company’s consolidated Profit After Tax (PAT) reached Rs 3,171 crore, marking a 35% increase from the previous year.
Revenue and Market Share
M&M’s consolidated revenue rose to Rs 37,924 crore, a 10% growth compared to Q2 FY24. The company maintained its top position in the SUV market with a 21.9% revenue market share, an increase of 190 basis points year-on-year. SUV volumes increased by 18% in Q2 and 21% year-to-date.
Segment Performance
The company’s market share in light commercial vehicles below 3.5 tons grew to 52.3%, and in the tractor segment, it achieved a record Q2 market share of 42.5%. M&M also led the electric three-wheeler segment with a 43.6% market share. The Auto division saw a 9% increase in quarterly volumes, reaching 2,31,000 units, with SUV volumes hitting a record 1,36,000 units.
Financial Highlights
The Auto segment’s consolidated revenue increased by 15% to Rs 21,755 crore, while PAT surged by 40% to Rs 1,423 crore. The successful launch of the Thar Roxx and a 10% increase in SUV production capacity contributed to this growth. The Farm sector achieved its highest-ever Q2 market share at 42.5%, with volumes increasing by 4% year-on-year.
Additional Achievements
Despite international market challenges, the Farm division’s revenue reached Rs 8,194 crore. Standalone Profit Before Interest and Tax (PBIT) rose by 20%, with margins improving to 17.5%. Mahindra Finance saw a 20% increase in assets under management, with non-performing assets improving to 3.8% and end losses reduced to 1%.
Tech Mahindra’s Contribution
Tech Mahindra contributed to the overall growth with a 490 basis point improvement in EBIT margin and strong performance in the BFSI sector. Anish Shah, Managing Director & CEO of M&M Ltd., praised the solid operating performance and market leadership in the Auto and Farm sectors.
Doubts Revealed
Q2 FY25 -: Q2 FY25 refers to the second quarter of the financial year 2025. In India, the financial year starts on April 1st and ends on March 31st of the next year. So, Q2 FY25 would be from July to September 2024.
Profit After Tax -: Profit After Tax is the money a company has earned after paying all its taxes. It’s like the pocket money you have left after buying all the things you need and paying any dues.
Rs 3,171 crore -: Rs 3,171 crore is a way to express a large amount of money in India. One crore is equal to ten million, so Rs 3,171 crore is 31,710 million rupees.
SUVs -: SUVs stand for Sports Utility Vehicles. These are big cars that are good for families and can be used on rough roads as well as city roads.
LCVs -: LCVs are Light Commercial Vehicles. These are smaller trucks or vans used for transporting goods and are often seen on Indian roads.
Consolidated revenue -: Consolidated revenue is the total money a company earns from all its different businesses combined. It’s like adding up all the money you get from different sources, like pocket money, gifts, and small jobs.
Market share -: Market share is the percentage of sales a company has in a particular market compared to its competitors. If a company has a high market share, it means many people are buying their products.
EBIT margins -: EBIT stands for Earnings Before Interest and Taxes. EBIT margins show how much money a company makes before paying interest and taxes, compared to its total sales. It’s like seeing how much money you have left before paying any dues or fees.
