Mahindra & Mahindra has reported impressive growth in production, sales, and financial performance for October, while also highlighting a significant increase in October sales for SML Mahindra Ltd (formerly known as SML Isuzu Ltd).

October Performance

Mahindra & Mahindra's total sales surged 24.8% year-on-year in October to 1.18 lakh units, while production increased 5.7% to 94,637 units. The company submitted its data to various stock exchanges, including NSE, BSE, Luxembourg Stock Exchange, and London Stock Exchange. The report covers multiple vehicle categories:

Vehicle Sales Breakdown

• Utility Vehicles: Key models include:
  • Thar/Thar Roxx: 7,970 diesel and 608 petrol units
  • XUV3XO variants
  • Bolero: 7,216 units
  • Scorpio series
  • XUV700 models
• Electric Vehicles: 209 units of Electric Origin SUV
• Three-Wheelers: Various electric models, including Treo with 6,526 passenger units
• Commercial Vehicles: 23,322 total sales

The figures include sales from subsidiary companies Mahindra Electric Automobile Limited and Mahindra Last Mile Mobility Limited.

Quarterly Financial Performance

Mahindra & Mahindra reported strong quarterly results:

• Revenue: Rose 21.3% to Rs 33,421.60 crore
• Net Profit: Up 18% to Rs 4,520.52 crore (exceeding analyst estimates of Rs 3,978.92 crore)

Segment Performance

• Automotive: 13% volume growth
  • Utility vehicles: 146,000 units
  • SUV market share: Increased to 25.7%
• Farm Equipment:
  • Tractor volumes: Rose 32% to 123,000 units
  • Market share: Improved to 43.0%
• Electric Three-Wheelers: Maintained 42.3% market share

SML Mahindra's Growth

SML Mahindra Ltd reported impressive growth:

Strategic Moves

• Mahindra & Mahindra acquired a 58.96% stake in SML Mahindra for ₹555.00 crore
• The acquisition led to a rebranding and is expected to strengthen the company's position in the commercial vehicle market
• SML Mahindra currently holds approximately 16% market share in the intermediate and light commercial vehicle bus segment
• Mahindra & Mahindra sold a 3.45% stake in RBL Bank worth Rs 678 crore at Rs 317 per share

Market Response

SML Mahindra's shares closed 0.32% higher at ₹3,145.00 on the National Stock Exchange, indicating investor confidence in the company's prospects under the new management.

As both Mahindra & Mahindra and SML Mahindra continue to navigate their strategic alignment, the strong October sales figures for both entities suggest a positive trajectory. The coming quarters will be crucial in demonstrating the effectiveness of the new strategic direction and its impact on both companies' financial performance and market positions.

Mahindra & Mahindra (M&M), a leading Indian multinational automotive manufacturing corporation, has reported a stellar performance for the second quarter, with consolidated profit surging 28% year-over-year. The company's impressive results were driven by strong growth across all business segments, particularly in its farm and auto divisions.

Farm Business Leads the Charge

M&M's farm business emerged as the star performer, with a remarkable 54% profit growth. This exceptional performance was fueled by robust tractor volumes, which increased by 32% compared to the same period last year. The company also gained 50 basis points in market share, further solidifying its position in the agricultural machinery sector.

Auto Segment Shows Resilience

Despite facing challenges due to the GST transition, which delayed vehicle deliveries from September 8th onwards, the auto business managed to achieve a commendable 14% profit growth. M&M gained significant ground in the auto market, with a 390 basis point increase in revenue market share year-over-year. The company also maintained its strong position in the Light Commercial Vehicle (LCV) segment, holding a 53.2% market share.

Electric SUV Penetration on the Rise

M&M's commitment to electric mobility is evident in its growing electric SUV penetration, which reached 8.7% with cumulative sales of 30,000 electric SUVs. This progress underscores the company's focus on sustainable transportation solutions and its ability to adapt to changing market demands.

Financial Services and Tech Segments Shine

Mahindra Finance demonstrated breakthrough performance with a 45% profit growth and improved asset quality, with Gross Non-Performing Assets (GNPA) falling below 4%. Tech Mahindra, the company's IT services arm, delivered an impressive 35% operating profit growth, contributing significantly to the overall results.

Strategic Acquisitions and Cash Flow Management

The company completed the acquisition of SML, further strengthening its portfolio. Despite significant capital expenditure and dividend payments, M&M maintained strong cash flow generation, highlighting its efficient financial management.

Outlook and Management Confidence

Management expressed confidence in achieving double-digit growth for the LCV and tractor segments, supported by recent GST rate reductions. This optimistic outlook reflects the company's strong market position and its ability to capitalize on favorable industry trends.

Financial Highlights

M&M's robust performance across all business segments demonstrates the company's resilience and strategic acumen in navigating a complex market environment. With strong growth in its core auto and farm businesses, coupled with impressive gains in electric vehicle penetration and financial services, Mahindra & Mahindra appears well-positioned for continued success in the coming quarters.