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Mahindra & Mahindra reported a 13% increase in Q2 net profit, raising its FY25 tractor growth forecast to 6-6.8%. SUV volumes rose 18%, and the M&M share price saw gains in 2024.
Mahindra & Mahindra Ltd. (M&M) has elevated its growth forecast for the tractor sector for the financial year 2025 to 6-6.8%, up from its previous 5% estimate. The revised forecast reflects the company’s strong Q2 FY25 performance, where key metrics across its automotive and farm segments exceeded market expectations, reinforcing positive sentiment around the M&M share price.
Net profit for Q2 surged by 13% to ₹3,841 crore, surpassing expectations.
Revenue increased to ₹27,553 crore, outpacing estimates of ₹26,942 crore.
EBITDA rose by 4%, with margins expanding to 14.2%.
Tractor market share reached 42.5%, and SUV volumes grew 18% year-on-year.
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M&M reported a significant uptick in both profitability and market share for the September quarter of FY25. The company’s net profit stood at ₹3,841 crore, a 13% year-on-year increase, which exceeded the CNBC-TV18 poll estimate of ₹3,405 crore. Total revenue also beat forecasts, reaching ₹27,553 crore, reflecting a positive response to the company’s product launches and market expansions. EBITDA for the quarter saw a 4% increase, rising to ₹3,903 crore, with margins expanding by 30 basis points to 14.2%, well above the expected 13.9%.
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In its automotive segment, M&M achieved its highest-ever quarterly volumes of 231,000 units, marking a 9% increase. The SUV segment led this growth with volumes reaching 136,000 units, an 18% rise compared to the same quarter last year. With an SUV capacity of 54,000 units, M&M continued its leadership in revenue market share, gaining 190 basis points.
The farm equipment sector also recorded solid growth, with quarterly volumes at 92,000 units, a 4% year-on-year increase. Despite international market challenges, M&M’s domestic tractor market share expanded to 42.5%, up by 90 basis points.
Metrics | Values |
Net Profit | ₹3,841 crore |
Revenue | ₹27,553 crore |
EBITDA | ₹3,903 crore |
EBITDA Margin | 14.2% |
Auto Segment Quarterly Volumes | 231,000 units |
SUV Volumes | 136,000 units |
Farm Equipment Volumes | 92,000 units |
Tractor Market Share | 42.5% |
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The performance across both the auto and farm divisions, alongside the upward revision of tractor growth for FY25, signals optimism for M&M's future. The company’s strategic focus on product innovation and market share expansion is expected to sustain investor interest in the M&M share price. Despite a slight dip in shares post-earnings, M&M has gained over 70% in 2024, underscoring a strong market presence.
Mahindra & Mahindra’s raised outlook for tractor growth and strong quarterly results bolster confidence in its growth trajectory. The positive momentum across auto and farm segments further supports a favourable outlook for the M&M share price going forward.
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