Mahindra Reports 13% Rise in Q2 Net Profit Driven by Strong SUV and Tractor Sales

Auto major Mahindra and Mahindra (M&M) reported a 13 percent rise in its standalone net profit for the July-September quarter at Rs 3,841 crore, led by higher sales of SUVs and a revival in the demand for tractors.

M&M said its automobile segment, which manufactures the much-popular Thar and Scorpio SUVs, has logged in the highest-ever quarterly volumes at 2,31,038 units for the quarter with a rise of 9 per cent over the same period of last year.

Tractor sales were up by 4 percent YoY to 92,382 units while its market share of farm equipment, it claimed, is the highest-ever Q2 market share of 42.5 percent for the tractor industry.

M&M, which heads India's tractor market, said that the farm equipment business segment has risen by a double digit of 10 per cent. Tractor sales surged 3.6% on good monsoon crops that ensured farmers had bumper yields and higher incomes, according to M&M, after tractor sales had fallen in two successive quarters in July-September and October-December of last year. End.

The EBITDA of the company zoomed by 30 per cent at Rs 3,908 crore from Rs 2,993 crore during the quarter and the EBITDA margin improved by 190 basis points (bps) at 14.2 percent from 12.3 percent in the same quarter of the last year.

"In Q2 FY25, we gained market share across both our auto and tractor businesses.". SUV volumes grew 18 per cent year-on-year and continued to lead in terms of revenue market share with an increase of 190 bps YoY. It was supported by the success of two launches. Volume market share for LCVs stands at 52.3 per cent, growing 260 bps YoY. The auto standalone PBIT margin was 9.5 per cent, up 140 bps YoY. Rajesh Jejurikar, Executive Director & CEO, Auto and Farm Sector, M&M Ltd, said