Mahindra Gains Market Share In Q3 FY24; Doubles Profit

Mahindra has announced financial results for the third quarter ending December 31, 2023, achieving its highest-ever Q3 volumes, with sales totalling 2,11,443 units, resulting in a 20 per cent growth compared to the previous year. Notably, the company maintained its leadership positions in various categories, including SUVs, Light Commercial Vehicles (LCVs), and electric three-wheelers. While SUVs played a major role in achieving this figure, the company continues to struggle with open bookings of 226K. Having said that, the company has managed to increase its market share to 21 per cent in the SUV segment, from 20.6 per cent reported in the same period last quarter.

Anish Shah, MD & CEO, M&M Ltd. said, “Our businesses have delivered a solid operating performance this quarter. The auto segment continues to gain market share and grew rapidly to double its profit."

Mahindra's consolidated revenue for the third quarter reached ₹35,299 crore, representing a 15 per cent year-on-year (YOY) growth. The company's year-to-date (YTD) revenue stood at ₹1,03,627 crore, marking a 17 per cent increase over the same period last year. The consolidated Profit After Tax (PAT) for Q3 witnessed a substantial surge of 34 per cent, totalling Rs 2,658 crore. Moreover, the YTD PAT saw a growth of 33 per cent.

The consolidated revenue for the Auto division in Q3 surged by 26 per cent YOY, reaching ₹19,380 crore. The standalone Profit Before Interest and Taxes (PBIT) also witnessed substantial growth, rising by 56 per cent to ₹ 1,533 crore.

Despite challenging market conditions, M&M's Farm Equipment division continued to perform well. The company saw a notable increase in tractor market share, reaching 41.8 per cent in Q3. Additionally, farm machinery revenue recorded a robust growth of 28 per cent YOY. The standalone Profit Before Interest and Taxes (PBIT) margin for the Farm segment improved by 20 basis points during the YTD period, reaching 16.4 per cent.