Mahindra & Mahindra Ltd Q3 FY2024 Consolidated PAT up 34%

The Board of Directors of Mahindra & Mahindra Limited today approved the financial results for the quarter and nine month ended 31st December 2023 of the Company and the consolidated Mahindra Group.

Mahindra & Mahindra Group delivered solid operating performance across all businesses, except TechM. Auto continues to gain market share. Farm market share improves despite decline in Industry. Financial services continues its strong performance on asset quality with record low GS3. Growth gems progressing well on 5X challenge with a notable milestone achieved at Susten with listing of India's largest renewable InvIT. Consolidated PAT at Rs 2,658 cr., up 34% Q3; up 33% YTD (excl. PY gains on SEL and Susten; PY Trucks impairment).

Auto

- Highest ever Q3 volumes at 211k, up 20%; highest ever UV volumes at 119k
- Open bookings of SUV at 226k (as on 1st February'24), reflecting continued strong demand
- Standalone PBIT Rs 1,533 cr., up 56% (excl. PY Trucks impairment) and PBIT margin 8.3%, up 170 bps
- Consolidated Q3 Revenue Rs 19,380 cr., up 26%; YTD Revenue Rs 55,248 cr., up 24%
- Consolidated Q3 PAT Rs 1,201 cr., up 2.5x (excl. PY Trucks impairment); YTD PAT Rs 3,369 cr., up 2.3x (excl. PY Trucks impairment)

Farm

- Tractor market share at 41.8%, up 80 bps; highest Q3 market share since F19
- Farm machinery revenue Rs 221 cr., up 28%; #2 in Rotavators market share estimated at 22.2%
- Standalone Q3 PBIT Rs 1,042 cr., down 5%; YTD PBIT margin 16.4%, up 20 bps
- Consolidated Q3 Revenue Rs 8,600 cr., flat; YTD Revenue Rs 26,684 cr., up 4% (excl. SEL gain)
- Consolidated Q3 PAT Rs 898 cr., down 4%; YTD PAT Rs 2,985 cr., up 7% (excl. SEL gain)

Services

- MMFSL AUM up 25%; lowest ever GS3 at 4.0%; PAT down 12% due to writeback in PY

- TechM revenue down 5%, PAT down 61%; lower deal closures and muted demand cycle; turnaround plan initiated under new CEO

Growth Gems on track

- Mahindra Lifespaces reported residential pre-sales of Rs 433 cr., PAT up 51%
- Club Mahindra total income 363 cr., up 8%; member addition up 13%
- Mahindra Logistics revenue Rs 1,397 cr., up 5%
- India's largest renewables InvIT listing completed in Jan 24

- Consolidated Q3 Revenue Rs 8,416 cr., up 12% (excl. PY Susten gain); YTD Revenue Rs 24,516 cr., up 13% (excl. PY Susten gain)

- Consolidated Q3 PAT Rs 559 cr., down 2% (excl. PY Susten gain); YTD PAT Rs 2,161 cr., flat

Commenting on Q3 and YTD F24 performance

Dr. Anish Shah, Managing Director & CEO, M&M Ltd. said, "Our businesses have delivered a solid operating performance this quarter. Auto continues to gain market share and grew rapidly to double its profit. Farm has gained market share despite tough market conditions. In Services, MMFSL had its lowest ever GS3 and credit costs are trending as per guidance. TechM is working through challenging operating results but I feel good that the right actions are being taken to turnaround its performance. We continued the journey of unlocking value in our growth gems with the listing of India's largest renewable InvIT and partnerships with marquee investors."

Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, "We had a strong quarter for both Auto and Farm businesses. We were #1 in SUVs with Revenue Market Share of 21% in Q3 while further improving our Auto Standalone PBIT margins. We increased tractor market share by 80 bps to 41.8% in Q3 even as the Tractor industry contracted on back of last year's high base, weather vagaries and lower reservoir levels. Our E-3W business is maintaining its market leadership with Q3 market share of 54% and YTD market share of 59.5%."

Mr. Manoj Bhat, Group Chief Financial Officer, M&M Ltd. said, "We continue to meet our objectives of 18% RoE and value creation from capital allocation actions. It has been a good quarter with multiple business showing growth momentum."

Shares of Mahindra & Mahindra Limited was last trading in BSE at Rs. 1657.60 as compared to the previous close of Rs. 1645.90. The total number of shares traded during the day was 161972 in over 6973 trades.

The stock hit an intraday high of Rs. 1679.40 and intraday low of 1625.00. The net turnover during the day was Rs. 267193930.00.

Source : Equity Bulls

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MahindraandMahindra INE101A01026 Q3FY24 9MFY24 ResultUpdate