M&M Q3 Results: Profit jumps 61% YoY on strong automotive show; in-line with estimates

Mahindra & Mahindra (M&M) on Wednesday reported strong double-digit growth in earnings for the third quarter ended December 2023, aided by robust performance of the automotive segment, and strong operating performance. M&M's net profit for Q3 surged 61% year-on-year (YoY) to ₹2,454 crore, compared to ₹1,528 crore in the year-ago period.

M&M's profit figure was in-line with CNBC-TV18's poll of ₹2,353 crore.

The company's revenue increased 17% YoY to ₹25,289 crore as against ₹21,653 crore in the corresponding quarter of last year. However, revenue was below CNBC-TV18's estimate of ₹25,400 crore.

Operating profit, calculated as earnings before interest, taxes, depreciation and amortization or EBITDA, rose 15% YoY to ₹3,237 crore. Margin stood at 12.8%.

The Mahindra & Mahindra Group has delivered a solid operating performance across all businesses, except TechM, it said in a statement.

Auto continues to gain market share. Farm market share improved despite decline in the industry, M&M said. Financial services continues its strong performance on asset quality with record low GS3. Growth gems progressing well on 5X challenge with a notable milestone achieved at Susten with listing of India’s largest renewable InvIT.

"Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions. In Services, MMFSL had its lowest ever GS3 and credit costs are trending as per guidance," said M&M Managing Director and CEO Anish Shah.

Shah said that TechM is working through challenging operating results but he feels good that the right actions are being taken to turnaround its performance. "We continued the journey of unlocking value in our growth gems with the listing of India’s largest renewable InvIT and partnerships with marquee investors."

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) at M&M said the company witnessed a strong quarter for both auto and farm businesses. "We were 1 in SUVs with revenue market share of 21% in Q3 while further improving our auto standalone PBIT margins."

"We increased tractor market share by 80 bps to 41.8% in Q3 even as the tractor industry contracted on back of last year’s high base, weather vagaries and lower reservoir levels. Our E-3W business is maintaining its market leadership with Q3 market share of 54% and YTD market share of 59.5%," said Jejurikar.

Shares of Mahindra And Mahindra Ltd were trading 0.15% lower at ₹1,644.30 apiece on the NSE today.