Mahindra and Mahindra Q1: PAT logs 20% YoY growth;RoE at strong 19.4%

Mahindra and Mahindra announced its first quarter results on Wednesday. The passenger cars and utility vehicles major for the June quarter reported a 20 per cent jump in net profit to Rs 3,283 crore.In the corresponding period a year ago, the company reported a one-time profit on KG Mobility (405 cr.) and MCIE stake sale (358 cr.).

The consolidated revenue at the company during the reporting quarter also logged 10 per cent on-year growth and came in at Rs 37,218 crore. It was reported at Rs 33,892 crore in the same quarter last year.

The company's volume in the SUV segment recorded volume growth of 24 per cent, while the revenue market shares was at 21.6 per cent, up 130 bps on-year. Further in the light commercial vehicle or LCV segment the company's market share edged higher by 160 bps to 50.9 per cent.

Also, in the tractors segment, the company recorded market share gains of 180 bps to 44.7 per cent in June quarter. Additionally, in the fast emerging 3-wheeler EV segment, the company's market share was a 43.4 per cent.

The company's press release noted that its IT subsidiary's (Tech Mahindra) transformation is underway, with margins a key focus.

"Market share gains and continued margin expansion for Auto and Farm, profits up 18%. Financial services assets quality improvements yielding results, profits up 37%. TechM turnaround commenced, operating performance improving. Growth gems on track to 5x challenge," noted the company's release.

“In Q1 F25, we gained market share in both Auto & Farm businesses. We achieved highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps YoY. We retained market leadership in SUVs with 21.6% revenue market share and in LCVs < 3.5T, we crossed 50.9% volume market share. Auto Standalone PBIT grew by 39% with margin improvement of 180 bps YoY," noted the company's Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector).

After the company's Q1 earnings, shares of the company traded higher by over 1 per cent at Rs 2,952.85 per share on the BSE.