In This Article:
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SUV Volumes: Up 20% year-over-year.
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Auto Market Share: Increased by 210 basis points to 22.5%.
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Auto Margins: Improved by 110 basis points.
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Farm Market Share: Increased by 170 basis points to 43.3%.
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Farm Margins: Increased by 210 basis points to 18.4%.
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Mahindra Finance Profit: Stand-alone profit exceeded INR 2,300 crores, up from INR 1,900 crores.
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Consolidated Profit Growth: 20% increase, excluding KG Mobility mark-to-market adjustments.
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Revenue Growth: Consolidated revenue up 14%, stand-alone revenue up 17%.
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Auto Profitability: 25% growth year-over-year.
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Farm Profitability: 30% growth year-over-year.
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Tech Mahindra Profit Growth: Over 80% year-over-year.
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Mahindra Finance Asset Growth: 17% increase in assets under management.
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Cash Generation: Close to INR 10,000 crores generated during the year.
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Impairment Impact: INR 654 crores impairment in stand-alone results, INR 156 crores impact in consolidated results.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SUV volumes increased by 20%, surpassing the mid- to high-teens target.
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Market share in the Auto sector rose by 210 basis points to 22.5%, and Auto margins improved by 110 basis points.
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Farm sector market share increased to 43.3%, with margins up 210 basis points to 18.4%.
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Mahindra Finance achieved a significant transformation, reducing GNPAs from 7-8% to less than 4%, while maintaining profitability.
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Consolidated profit growth of 20%, with a 14% increase in revenue and a 17% rise in stand-alone revenue.
Negative Points
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Write-offs were necessary for category B businesses, including MAM in Japan and Sampo in Finland, due to lack of profit trajectory.
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International markets negatively impacted Farm sector revenue growth, which was only 6% due to challenges in Turkey, Brazil, and the US.
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Logistics business struggled, requiring new leadership to drive future growth.
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Competitive intensity in the Farm sector could impact future margins if it increases.
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Challenges in the EV segment include managing customer delivery experiences and ensuring adequate production ramp-up.
Q & A Highlights
Q: Can you provide insights on the electric vehicle (EV) mix and margins, and how they might change over time? A: Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector, explained that the current bookings are heavily skewed towards the top-end PACK-3, with over 75% of bookings. The mix is expected to change as display and test drive vehicles for PACK-2 and PACK-1 become available. The company benefits from operating leverage due to shared facilities at the Chakan plant, and the main variables affecting margins will be the mix of PACKs and global cell price movements.