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Mahindra & Mahindra Limited — Q3 FY25
M&M delivered a strong Q3 FY25 with consolidated PAT up 20% YoY, driven by robust performance in Auto & Farm.
bullish
high
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M&M delivered a strong Q3 FY25 with consolidated PAT up 20% YoY, driven by robust performance in Auto & Farm. Auto volumes grew 16% and SUV market share expanded 200bps to 23%, while Farm volumes rose 20% with market share at 44.2%. Auto standalone PBIT margin improved to 9.7% (+120bps YoY) and Farm core tractor margin reached 19.5% (+260bps). The company is preparing for the BE 6e and XEV 9e electric SUV launch with bookings opening Feb 14, targeting 5,000 units/month combined. Management guided for Q4 tractor industry growth >15% and expects positive momentum into FY26. A key risk is the mark-to-market hit from KG Mobility investment, which depressed reported profits despite strong operational performance.
M&M ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी का कुल मुनाफा पिछले साल की तुलना में 20% बढ़ा। इसकी वजह ऑटो और कृषि कारोबार का मजबूत प्रदर्शन रहा। गाड़ियों की बिक्री 16% और एसयूवी की बाजार हिस्सेदारी 23% हो गई। ट्रैक्टर की बिक्री 20% बढ़ी और बाजार हिस्सेदारी 44.2% रही। कंपनी जल्द ही दो नई इलेक्ट्रिक एसयूवी लॉन्च करेगी, जिनकी बुकिंग 14 फरवरी से शुरू होगी। हर महीने 5,000 गाड़ियां बेचने का लक्ष्य है। अगली तिमाही में ट्रैक्टर उद्योग में 15% से अधिक वृद्धि की उम्मीद है। हालांकि, केजी मोबिलिटी में निवेश से कंपनी को नुकसान हुआ, जिससे रिपोर्ट किया गया मुनाफा कम दिखा।
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KG Mobility Mark-to-Market Impact
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SUV Market Share (Revenue)
23%
+200bps YoY
SUV revenue market share increased 200 basis points year-over-year to 23%.
Farm Market Share
44.2%
+240bps YoY
Farm tractor market share reached 44.2%, the highest ever for Q3.
LCV Market Share
51.9%
+230bps YoY
LCV market share increased 230 basis points year-over-year to 51.9%.
EV Video Content Views
1.4B
N/A
Over 1.4 billion views of video content related to the new electric SUV launches.
What Changed vs Last Quarter
NEW
EV Monthly Volume Target 5,000 Units
Management targets an initial monthly volume of about 5,000 units combined for the BE 6e and XEV 9e.
NEW
Farm International Operations Review in Q4
The evaluation of international farm operations will be completed in Q4, with potential actions to be disclosed.
UPDATED
Q4 Tractor Industry Growth >15%
Management expects the tractor industry to grow over 15% in Q4 FY25, driven by good reservoir levels, Rabi sowing, and favorable terms of trade.
UPDATED
Full Year Tractor Industry Growth ~7%
Based on Q4 growth, the full year tractor industry growth is expected to be over 7%.
DROPPED
Auto volume growth of mid-to-high teens
Management expects full-year SUV portfolio volume growth of 15%-18%.
DROPPED
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.
DROPPED
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.
NEW RISK
KG Mobility Mark-to-Market Impact
A significant mark-to-market loss from KG Mobility investment depressed reported profits despite strong operational performance.
NEW RISK
EV Ramp-Up Quality Risk
Analyst raised concern about quality issues during EV ramp-up; management acknowledged and plans gradual ramp-up to avoid quality trade-offs.
NEW RISK
LCV Segment Weakness
The LCV segment (2-3.5 ton) continues to see low single-digit growth, and management is unable to explain the sluggishness despite favorable economic factors.
NEW RISK
CAFE 3 Norms Uncertainty
CAFE 3 norms are still under debate with no consensus, potentially delaying implementation and creating regulatory uncertainty.
RISK GONE
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.
RISK GONE
Urban demand slowdown
Management acknowledged fundamental stress in urban India, which could impact SUV demand if not offset by rural recovery.
RISK GONE
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.
RISK GONE
LCV demand recovery uncertainty
LCV industry has been subdued for several quarters; while October showed positive turnaround, sustainability is uncertain.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY24, Q4 FY24
Management expects full-year SUV portfolio volume growth of 15%-18%.
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Capacity expansion on track to 49,000 units per month by end of current quarter, though near-term volumes may be impacted by XUV300 ramp-down.
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
TechM profit down 61%; management acknowledged it as a sore spot and expects recovery but with uncertainty.
Mentioned in Q2 FY24, Q4 FY24
Global EV slowdown and low penetration in India may impact BEV launch success; management relies on 'wow' products to drive demand.
Mentioned in Q1 FY24, Q2 FY24
Management expects farm machinery revenue to grow about 40% for the full year, up from 35% in H1.
Fast read
Guidance and risk preview
Management expects the tractor industry to grow over 15% in Q4 FY25, driven by good reservoir levels, Rabi sowing, and favorable terms of trade.
A significant mark-to-market loss from KG Mobility investment depressed reported profits despite strong operational performance.
View Risks →