New Delhi . Auto sector major Mahindra & Mahindra (M&M) on Thursday reported a 13 per cent rise in its standalone net profit to Rs 3,841 crore for the JulySeptember quarter. The company informed that this increase in net profit was seen due to higher sales of SUVs and improvement in demand for tractors.
M&M said its automobile segment, which produces the popular Thar and Scorpio SUVs, recorded the highest ever quarterly volumes at 2,31,038 units in the quarter, up 9 per cent compared to the same period last year.
The company's tractor sales during the quarter grew 4 per cent yearonyear to 92,382 units, with its highest ever second quarter market share for the farm equipment segment at 42.5 per cent.
M&M, the Indian market leader for tractors, recorded doubledigit growth in the farm equipment segment with revenue growth of 10 per cent. The company's tractor sales grew by 3.6 per cent on the back of good monsoon that boosted crop production and farmers' income.
Tractor sales have increased for the second consecutive quarter, whereas they had declined by 7 percent in 20232024. This decline was due to irregular weather in the agricultural sector of the country.
The company's income before tax, depreciation and Ebitda increased 30 per cent to Rs 3,908 crore in the second quarter from Rs 2,993 crore. While Ebitda margin increased to 14.2 percent from 12.3 percent in the same quarter last year.
Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sectors, M&M Ltd, said, “In Q2FY25, we gained market share in both our auto and tractor businesses.
SUV volumes grew 18 percent yearonyear, maintaining leadership in revenue market share. There was a rise of 190 bps on the back of two successful launches.
The volume market share for LCVs is 52.3 per cent, an increase of 260 bps YoY. Auto standalone PBIT margin was 9.5 per cent, an increase of 140 bps YoY.”
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Image Credit: KhasKhabar.