M&M Q2 F24 Results Display Sturdy Growth: Consolidated PAT Up 6%, Standalone PAT Up 67%.

BW Online Bureau Nov 11, 2023

Mahindra and Mahindra (M&M) revealed its financial results for the quarter and half-year ended September 30, 2023, exhibiting growth across key sectors. The Board of Directors approved the results, highlighting a standalone profit after tax (PAT) surge of 67 per cent in Q2 F24 and a consolidated PAT increase of 6 per cent, excluding the revaluation gain from PY SEL.

Anish Shah, Managing Director & CEO, M&M stated, “During Q2, operating performance across Auto, farm and Services was robust. Auto rapidly grew to double its operating profit. The farm continues to be resilient despite tough market conditions. In services, MMFSL had its lowest-ever GS3 and turnaround is on track to unlock its full potential. Growth Gems are progressing well on the 5x challenge. TechM had a tough quarter, and we’re now initiating the transformation journey in the business. With H1 PAT growth of 18 per cent, we are well on our way to deliver Scale by transforming our core businesses and realising the 5x challenge for growth gems.”

Highlights:

Standalone PAT: Rs 3,452 crore, up 67 per cent
Consolidated PAT: Up 6 per cent (excl. PY SEL revaluation gain)
Strong first half: standalone PAT up 79 per cent, consolidated PAT up 33 per (excl. SEL), RoE at 20 per cent

Auto Sector:

Highest-ever quarterly volumes at 212k, up 18 per cent
SUV revenue is up 28 per cent, capturing a market share of 19.9 per cent, up by 90 bps.
Standalone PBIT at Rs 1,452 cr., up 64 per cent; PBIT margin at 7.9 per cent, up 200 bps
Consolidated Q2 Revenue: Rs 18,869 cr., up 20 per cent; H1 Revenue: Rs 35,868 cr., up 23 per cent
Consolidated Q2 PAT Rs 1,015 cr., up 2x; H1 PAT Rs 2,168 cr., up 2.2x

Farm Sector:

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), M&M, stated, “We delivered yet another robust performance in this quarter. We have maintained our SUV revenue market share at 19.9 per cent while further improving our auto standalone PBIT margins. In the tractor business, we increased our market share by 150 basis points on the back of exciting new launches by Oja, Swaraj Target, and Naya Swaraj. Our E-3W business continued market leadership with 61.1 per cent market share.”

Tractor market share at 41.6 per cent, up 150 bps, is the highest Q2 market share in a decade.
Mega-launch of Oja and Naya Swaraj
Farm machinery revenue is Rs 223 crore, up 35 per cent; No. 2 in the rotavators market share is estimated at 21.5 per cent.
Standalone PBIT: Rs 946 cr., down 2 per cent; H1 PBIT margin: 16.8 per cent, up 70 bps
Consolidated Q2 Revenue: Rs 8,373 cr., down 4 per cent; H1 Revenue: Rs 18,084 cr., up 3 per cent
Consolidated Q2 PAT Rs 800 cr., down 7 per cent (excl. SEL); H1 PAT Rs 2087 cr., up 13 per cent (excl. SEL)

Services Sector:

MMFSL AUM is up 27 per cent, lowest ever GS3 at 4.3 per cent, PAT down 48 per cent due to writeback in PY
TechM revenue is down 2 per due to weak demand and exits from non-core businesses; a one-off margin impact of ~260 bps; and PAT is down 62 per cent
Growth Gems on Track: Mahindra Lifespaces reported residential pre-sales of Rs 455 crore, up 14 per cent; Club Mahindra reported its highest ever Q2 total income of Rs 333 crore, up 10 per cent; Mahindra Logistics revenue is Rs 1,365 crore, up 3 per cent.
Consolidated Q2 Revenue: Rs 8,056 cr., up 11 per cent; H1 Revenue: Rs 16,100 cr., up 13 per cent consolidated Q2 PAT: Rs 533 cr., down 37 per cent; H1 PAT: Rs 1,601 cr., up 1 per cent

Manoj Bhat, Group Chief Financial Officer, M&M, stated, “We have delivered strong H1 F24 operating performance with EPS at Rs 52.4, up 18 per cent. With a focus on operational metrics and value creation through our capital allocation actions, we continue to deliver a RoE greater than 18 per cent.”