M&M Q1: A Marginal Decline in Profit

31 Jul 2024 , 03:36 PM

Mahindra & Mahindra (M&M) reported a marginal 5.3% year-on-year decline in standalone net profit for the first quarter of this fiscal year, amounting to ₹2,613 crore, down from ₹2,759 crore in the corresponding quarter of the previous year.

Despite the dip in net profit, the Mumbai-based company’s revenue from operations saw a 12.02% year-on-year increase, rising to ₹27,038.79 crore from ₹24,137.19 crore in the same period last year. The automaker’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the June quarter grew by 16% year-on-year to ₹4,116 crore, compared to ₹3,551 crore in the previous year’s quarter. Operating margins also improved, reaching 14.9% for the June quarter, up from 13.6% a year ago.

M&M experienced growth in its revenue market share within the SUV segment and gained market share in the tractors segment during the June quarter. The company’s consolidated net profit increased by 20%, reaching ₹3,283 crore for the first quarter ended June 30, 2024, compared to ₹2,745 crore in the year-ago period. Consolidated revenue rose by 10% year-on-year to ₹37,218 crore, up from ₹33,892 crore in the same quarter of the previous fiscal year.

Anish Shah, Managing Director & CEO of M&M, remarked that the company has commenced FY25 with strong operating performance across all its business segments.