Mahindra & Mahindra Ltd. Reports Strong Q3 FY24 Results: Net Profit Surges 60.6%
Mahindra & Mahindra Ltd., a leading automaker based in Mumbai, witnessed a significant increase in its income during the third quarter of fiscal 2024, meeting market estimates. According to the exchange filing on Wednesday, the net profit of the company soared by 60.6% year-on-year to reach Rs 2,454 crore. This remarkable growth was supported by a 16% rise in revenue, reaching Rs 25,642.4 crore in the three-month period ending December 31. Analysts surveyed by Bloomberg had anticipated revenue and net profit figures of Rs 25,300.9 crore and Rs 2,375.6 crore, respectively.
Key Highlights of M&M’s Q3 FY24 Results (Standalone, YoY):
- Revenue Growth: The company witnessed a robust 16% increase in revenue, amounting to Rs 25,642.4 crore, surpassing the Bloomberg estimate of Rs 25,300.9 crore.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Mahindra & Mahindra’s EBITDA rose by 9.7% to Rs 3,590.3 crore, outperforming the Bloomberg estimate of Rs 3,208.3 crore.
- EBITDA Margin: The EBITDA margin expanded by 80 basis points to 14%, exceeding the Bloomberg estimate of 12.7%.
- Net Profit Surge: The net profit surged by an impressive 60.6% to Rs 2,454 crore, surpassing the Bloomberg estimate of Rs 2,375.6 crore.
Factors Driving Growth:
The stellar performance of Mahindra & Mahindra can be attributed to several factors. Firstly, the automotive segment exhibited robust growth, driven by a favorable product mix and operating leverage benefits. This segment played a pivotal role in bolstering the company’s standalone net profit, which witnessed a remarkable 60% year-on-year surge.
Revenue Growth Drivers:
The company’s revenue growth was primarily fueled by strong volume growth in the automotive segment, offsetting weaknesses in the tractor segment. Despite challenges, Mahindra & Mahindra managed to achieve a remarkable turnover of Rs 25,642 crore in the fiscal third quarter, showcasing an impressive 16% year-on-year increase. Notably, its volumes surged by 11.1% year-on-year to 3,13,115 units in Q3FY24.
Sales Performance:
Auto sales witnessed a substantial 20.1% year-on-year increase, reaching 2,11,443 units, while tractor volumes experienced a marginal decline of 4% from the previous year, totaling 1,00,522 units during the last quarter.
Future Outlook:
Mahindra & Mahindra’s strong financial performance in the third quarter of fiscal 2024 underscores its resilience and ability to navigate through challenging market conditions. With a focus on innovation, product excellence, and customer satisfaction, the company remains poised for continued growth and success in the dynamic automotive industry.
At 02:25 PM, M&M shares were trading at Rs 1,643.05 apiece on the BSE, down by 0.17 percent from the previous day’s close.
