MUMBAI: The homegrown automaker Mahindra and Mahindra has reported a marginal 5.3 percent year-on-year fall in standalone net in the June quarter at Rs 2,613 crore despite a healthy topline growth and robust margins.
The city-based automaker told reporters on Wednesday that its revenue from operations rose over 12 percent to Rs 27,038.79 crore in the reporting quarter and operating margins came in at 14.9 percent for the June quarter as against 13.6 percent. In the June 2023 quarter, M&M’s standalone profit had nearly doubled to Rs 2,759 crore, boosted by a one-time gain of over Rs 405 crore.
The company said its market share from a revenue angle in the SUV segment rose at 21.6 percent, up 130 bps, and in tractors it retained its market leadership 44.7 percent in the June quarter. In sub-3.5 tonne light commercial vehicles and e-three wheelers space, the company registered a market share of 50.9 percent and 43.4 percent, respectively.
The company refused to share volume market share for these segments. Despite faltering numbers, the managing director Anish Shah claimed that the company started FY25 with strong operating performance across all its businesses."Capitalising on leadership position, auto and farm businesses continued to expand market share and profit margins. With this momentum we will continue to deliver scale in F25", he said.
Underscoring the growth in market share in both auto and farm business, Rajesh Jejurikar, the chief executive of auto and farm sector said, the company could retain market leadership in SUVs with 21.6 percent revenue market share and in LCVs under 3.5-tonne, it crossed 50.9 percent volume market share.
Following the poor set of numbers, the M&M counter closed 0.4 percent down at 2,910.80 on the BSE while the benchmark index close 0.35 percent up, hitting a new closing high.