Auto Revenue Market Share
21.9%
+2pp YoY
Auto revenue market share increased by almost two percentage points versus last year.
M&M
Diversified
05 Nov 2024
Mahindra & Mahindra Limited — Q2 FY25
M&M delivered a strong Q2 FY25 with consolidated PAT up 35% YoY to INR 3,171 crore, driven by broad-based strength across auto, farm, and services.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
M&M delivered a strong Q2 FY25 with consolidated PAT up 35% YoY to INR 3,171 crore, driven by broad-based strength across auto, farm, and services. Auto revenue grew 15% YoY with PBIT margin expanding 140bps, supported by market share gains (21.9%) and successful price repositioning of XUV700. Farm domestic margins improved 150bps to 18.7% despite international headwinds. Services PAT surged 80% YoY, led by Tech Mahindra and Mahindra Finance. Management guided for mid-to-high teens auto volume growth and 6-7% tractor industry growth in H2, with EV launches (BE 6e, XEV 9e) in early 2025. Key risk: elevated launch costs and EV ramp-up may pressure near-term margins.
M&M ने दूसरी तिमाही (जुलाई-सितंबर 2024) में शानदार प्रदर्शन किया। कंपनी का कुल मुनाफा पिछले साल की तुलना में 35% बढ़कर 3,171 करोड़ रुपये हो गया। यह वृद्धि ऑटो, कृषि और सेवाओं तीनों क्षेत्रों में मजबूती से आई। ऑटो सेक्टर की आय 15% बढ़ी और मुनाफा मार्जिन 1.4% सुधरा, क्योंकि XUV700 की कीमत सही रखी गई और बाजार हिस्सेदारी 21.9% पहुंची। कृषि क्षेत्र में घरेलू मार्जिन 18.7% हो गया। सेवाओं (टेक महिंद्रा और महिंद्रा फाइनेंस) का मुनाफा 80% उछला। कंपनी को उम्मीद है कि ऑटो बिक्री 15-17% और ट्रैक्टर उद्योग 6-7% बढ़ेगा। 2025 की शुरुआत में नई इलेक्ट्रिक गाड़ियां (BE 6e, XEV 9e) लॉन्च होंगी। लेकिन नई लॉन्च की लागत और EV उत्पादन बढ़ने से निकट भविष्य में मुनाफा कम हो सकता है।
Key Numbers
Farm Domestic Market Share (YTD Oct)
43.9%
+1pp YoY
Farm market share reached 43.9% year-to-date October, up about one percentage point.
SUV Volume Growth Guidance
15%-18%
N/A
Management expects full-year SUV portfolio volume growth of 15%-18%.
Tractor Industry Growth Outlook (H2)
13%-15%
N/A
Revised tractor industry growth outlook for second half to 13%-15%.
What Changed vs Last Quarter
NEW
EV launches in early 2025
Two electric origin SUVs (BE 6e and XEV 9e) to be revealed in November 2024 and in market early 2025.
NEW
Auto PBIT margin medium-term goal of ~10%
Management targets auto PBIT margin to first reach FY19 levels of around 10% as a medium-term goal.
UPDATED
Auto volume growth of mid-to-high teens
Management expects full-year SUV portfolio volume growth of 15%-18%.
UPDATED
Tractor industry growth of 6-7% for FY25
Revised tractor industry growth outlook to 6%-7% for the full year, implying 13%-15% H2 growth.
DROPPED
Logistics express business breakeven by end of Q2 FY25
Management committed to turning around the express logistics business to breakeven by the end of the current quarter.
DROPPED
Effective tax rate ~23-24% for FY25
CFO guided effective tax rate for FY25 to be approximately 23-24%.
NEW RISK
International farm business stress
North American tractor market has shrunk significantly (11 quarters of degrowth) and Turkish hyperinflation impacts accounting; management is evaluating but not exiting yet.
NEW RISK
Urban demand slowdown
Management acknowledged fundamental stress in urban India, which could impact SUV demand if not offset by rural recovery.
NEW RISK
EV launch costs and margin dilution
Q3 will see marketing and depreciation costs for EVs with no revenue, and EV margins as a percentage will be lower than ICE due to denominator effect.
NEW RISK
LCV demand recovery uncertainty
LCV industry has been subdued for several quarters; while October showed positive turnaround, sustainability is uncertain.
RISK GONE
Tepid industry demand environment
Overall auto industry buoyancy is low, which could pressure volume growth despite product launches.
RISK GONE
Commodity price risk (rubber) for tractor margins
Rising rubber prices could impact tractor margins, which are sensitive to input costs.
RISK GONE
Policy uncertainty in EV incentives
Changes in FAME/EMPS schemes create volatility in last-mile mobility profitability and require recertification costs.
RISK GONE
Potential cannibalization from Thar 5-door
Thar 5-door launch may cannibalize Thar 3-door volumes, creating near-term uncertainty in billing.
Management Guidance
Auto volume growth of mid-to-high teens
Management expects full-year SUV portfolio volume growth of 15%-18%.
Management guidance growthTractor industry growth of 6-7% for FY25
Revised tractor industry growth outlook to 6%-7% for the full year, implying 13%-15% H2 growth.
Management guidance growthEV launches in early 2025
Two electric origin SUVs (BE 6e and XEV 9e) to be revealed in November 2024 and in market early 2025.
Management guidance expansionAuto PBIT margin medium-term goal of ~10%
Management targets auto PBIT margin to first reach FY19 levels of around 10% as a medium-term goal.
Management guidance marginsKey Risks
International farm business stress
North American tractor market has shrunk significantly (11 quarters of degrowth) and Turkish hyperinflation impacts accounting; management is evaluating but not exiting yet.
medium · management_commentaryUrban demand slowdown
Management acknowledged fundamental stress in urban India, which could impact SUV demand if not offset by rural recovery.
medium · analyst_questionEV launch costs and margin dilution
Q3 will see marketing and depreciation costs for EVs with no revenue, and EV margins as a percentage will be lower than ICE due to denominator effect.
medium · management_commentaryLCV demand recovery uncertainty
LCV industry has been subdued for several quarters; while October showed positive turnaround, sustainability is uncertain.
low · data_observationNotable Quotes
This is one quarter where we've seen all our businesses come together.
We are not changing our projections... because we believe that the products that we've launched are going to keep that momentum going.
Services businesses have contributed more to M&M's profits than a tractor business has in this quarter.
Frequently Asked Questions
What was Mahindra & Mahindra's revenue in Q2 FY25?
Mahindra & Mahindra reported revenue of ₹38,000 Cr in Q2 FY25, representing a +10% change compared to the same quarter last year.
What guidance did Mahindra & Mahindra management give for FY26?
Auto volume growth of mid-to-high teens: Management expects full-year SUV portfolio volume growth of 15%-18%. Tractor industry growth of 6-7% for FY25: Revised tractor industry growth outlook to 6%-7% for the full year, implying 13%-15% H2 growth. EV launches in early 2025: Two electric origin SUVs (BE 6e and XEV 9e) to be revealed in November 2024 and in market early 2025. Auto PBIT margin medium-term goal of ~10%: Management targets auto PBIT margin to first reach FY19 levels of around 10% as a medium-term goal.
What are the key risks for Mahindra & Mahindra in FY26?
Key risks include International farm business stress — North American tractor market has shrunk significantly (11 quarters of degrowth) and Turkish hyperinflation impacts accounting; management is evaluating but not exiting yet.; Urban demand slowdown — Management acknowledged fundamental stress in urban India, which could impact SUV demand if not offset by rural recovery.; EV launch costs and margin dilution — Q3 will see marketing and depreciation costs for EVs with no revenue, and EV margins as a percentage will be lower than ICE due to denominator effect.; LCV demand recovery uncertainty — LCV industry has been subdued for several quarters; while October showed positive turnaround, sustainability is uncertain..
Did Mahindra & Mahindra meet its previous quarter's guidance?
Of 3 tracked promises, management 0 met, 0 close, 3 missed.
Where can I read the full Mahindra & Mahindra Q2 FY25 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.