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Anish Shah, Group CEO & Managing Director, M&M
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Driven by strong automobile and tractor sales in a difficult demand environment, Mahindra & Mahindra saw its net profit and revenue rise by about 20 per cent in the fourth quarter of FY25. Automotive volumes rose 20 per cent and farm equipment 23 per cent.
In the near term, the company is anticipating a revival of demand in the urban areas.
“We see the demand picking up with spending increasing, smaller segment will start gaining impact with income tax relief. We think that as interest rates come down over the next few months, the urban sentiment will start picking up,” said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector).
The maker of Scorpio and Thar reported consolidated net profit of ₹3,295 crore and ₹42,599 crore in revenue from operations during the quarter.
“Auto and farm sector saw strong execution in market share and margin numbers. We promised SUV growth of mid to high teens, and we are ahead of that in a market that has been a difficult one. Our growth gems are scaling up well. We continue to build strong businesses that will deliver significant value to our stakeholders,” said Anish Shah, Group CEO & Managing Director, M&M Ltd.
M&M board has recommended a dividend of ₹25.3 (506 per cent) per ordinary (equity) share of the face value of ₹5 each.
GreenField plant/Electric vehicles
To meet the growing demand, the company will set up a greenfield plant primarily for its passenger vehicles by FY28. The current capacity is above 90 per cent, with models like 3XO and Thar Roxx running at full capacity. Further, M&M was number 1 in the electric vehicle revenue market share during the quarter. It plans to export its electric vehicle portfolio to the EU, too.
“We have not decided yet where we will come up with the greenfield plant, we will see what kind of investment subsidy we get from different States. At this point, we are looking for a passenger vehicle plant, but we will have provision for some of our other business elements as we come in. We plan to enter the EU, it will be in a calibrated way. We will right-hand drive electric vehicle first and then a left-hand drive,” said Jejurikar
Urban demand
While the automaker reported strong growth in its automobile portfolio, it acknowledged the stress in urban demand. The company also pointed out that its passenger vehicle inventory during the quarter was under 30 days.
“There is stress in urban areas, while rural areas are very strong. We have seen strong demand for our product and growth momentum in SUV and electric vehicles,” added Jejurikar.
The company reported the highest ever full-year market share in the tractor segment and achieved a revenue growth of a 3-year CAGR of 9.3 per cent in FY25 in the farm segment.
Published on May 5, 2025
This article first appeared on The Hindu Business Line
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