Q2 2025 Mahindra and Mahindra Ltd Earnings Call Transcript
Key Points
- Mahindra & Mahindra Ltd (MAHMF) reported a strong operating performance in both the Auto and Farm sectors, with Auto revenue market share increasing to 21.9%, up nearly 2 percentage points from the previous year.
- The company achieved significant margin improvements, with PBIT margins in the Auto sector up by 140 basis points and Farm sector margins up by 150 basis points compared to the same quarter last year.
- Mahindra Finance showed a positive turnaround with asset quality improving, as gross stage 3 (GS3) assets were reduced to 3.8%, and profit after tax increased by 36%.
- The renewables business, Susten, is progressing faster than planned, securing almost 1 gigawatt in the last quarter alone, indicating strong growth potential.
- The company maintained a robust consolidated profit after tax growth of 35% year-over-year, with a return on equity (ROE) of 18.9% for the quarter, surpassing their target of 18%.
- Mahindra & Mahindra Ltd (MAHMF) faced challenges in its international Farm business, particularly in North America, where the market has significantly shrunk, and in Turkey, where hyperinflation affected accounting numbers.
- The company experienced a 1% decline in disbursements in Mahindra Finance, although this was not a major concern as the focus was on building a stable business model.
- There were some pressures on logistics profitability due to the integration of Rivigo, despite revenue growth in the segment.
- The company anticipates temporary pressure on margins in the Auto sector due to launch expenses, particularly in Q3.
- Mahindra & Mahindra Ltd (MAHMF) is facing capacity constraints in some ICE models, necessitating a review of their manufacturing footprint to address the demand.
Good afternoon, everyone, and a very warm welcome to the Q2 analyst meet of Mahindra & Mahindra Limited. We have with us today our Group CEO and MD, Dr. Anish Shah, ED and CEO of our Auto and Farm business, Mr. Rajesh Jejurikar and our Group CFO, Mr. Amarjyoti Barua. Once the presentation concludes, we will commence the Q&A session. Just as a reminder, this meeting is being recorded. For the purpose of completeness, I do wish to read this out.
Just next slide, please. Thank you. Certain statements in this meeting with regard to our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to be materially different from those in such forward-looking statements. With that, I now hand over to Dr. Shah for his opening remarks.
Good afternoon, everyone. Good evening to folks who are joining online or good morning as well. Before we start the presentation, I'd just like
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