Latest news with #AmarjyotiBarua
Yahoo
06-05-2025
- Automotive
- Yahoo
Mahindra & Mahindra Ltd (MAHMF) Q4 2025 Earnings Call Highlights: Strong Growth in Auto and ...
SUV Volumes: Up 20% year-over-year. Auto Market Share: Increased by 210 basis points to 22.5%. Auto Margins: Improved by 110 basis points. Farm Market Share: Increased by 170 basis points to 43.3%. Farm Margins: Increased by 210 basis points to 18.4%. Mahindra Finance Profit: Stand-alone profit exceeded INR 2,300 crores, up from INR 1,900 crores. Consolidated Profit Growth: 20% increase, excluding KG Mobility mark-to-market adjustments. Revenue Growth: Consolidated revenue up 14%, stand-alone revenue up 17%. Auto Profitability: 25% growth year-over-year. Farm Profitability: 30% growth year-over-year. Tech Mahindra Profit Growth: Over 80% year-over-year. Mahindra Finance Asset Growth: 17% increase in assets under management. Cash Generation: Close to INR 10,000 crores generated during the year. Impairment Impact: INR 654 crores impairment in stand-alone results, INR 156 crores impact in consolidated results. Warning! GuruFocus has detected 5 Warning Sign with MAHMF. Release Date: May 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SUV volumes increased by 20%, surpassing the mid- to high-teens target. Market share in the Auto sector rose by 210 basis points to 22.5%, and Auto margins improved by 110 basis points. Farm sector market share increased to 43.3%, with margins up 210 basis points to 18.4%. Mahindra Finance achieved a significant transformation, reducing GNPAs from 7-8% to less than 4%, while maintaining profitability. Consolidated profit growth of 20%, with a 14% increase in revenue and a 17% rise in stand-alone revenue. Write-offs were necessary for category B businesses, including MAM in Japan and Sampo in Finland, due to lack of profit trajectory. International markets negatively impacted Farm sector revenue growth, which was only 6% due to challenges in Turkey, Brazil, and the US. Logistics business struggled, requiring new leadership to drive future growth. Competitive intensity in the Farm sector could impact future margins if it increases. Challenges in the EV segment include managing customer delivery experiences and ensuring adequate production ramp-up. 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. Q: Are all costs, including depreciation, fully factored into the EV margins? A: Yes, according to Rajesh Jejurikar, depreciation for the two launched EV products is fully captured starting from the fourth quarter. Amarjyoti Barua, Group CFO, added that costs are capitalized and will be depreciated as new products are launched. Q: How does Mahindra & Mahindra view the demand for ICE vehicles and capacity expansion? A: Rajesh Jejurikar noted that capacity expansion should not be directly equated with volume growth, as some new products will replace existing ones. He emphasized that India is at an early stage of vehicle penetration, and the company is optimistic about leveraging this growth. The company expects to grow faster than the market, driven by a strong product portfolio. Q: What are the key learnings from the initial deliveries of EVs, and how will they be incorporated into future products? A: Rajesh Jejurikar highlighted the importance of customer experience, noting that delivery processes are more complex than anticipated. The company is focusing on improving software updates and customer interactions. They have decided to slow down deliveries to ensure a high-quality customer experience, emphasizing the need for thorough tutorials and support. Q: What differentiates Mahindra's EVs from competitors, and how does the company plan to maintain a sustainable lead? A: Rajesh Jejurikar outlined several differentiators, including aspirational design, advanced features not available in luxury cars, and leveraging existing manufacturing and dealer networks. These factors, combined with a strong product presence, create a competitive advantage. Anish Shah, CEO, added that the company's ability to integrate software and maintain high-quality standards is a key strength. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Time of India
06-05-2025
- Automotive
- Time of India
M&M shares rise over 4% as Q4 results beat estimates
Shares of Mahindra & Mahindra (M&M) climbed as much as 4.3% on Tuesday to₹3,150 on BSE after the auto major posted stronger-than-expected March quarter results and announced a sharp hike in its annual dividend, drawing positive commentary from brokerages. Mahindra & Mahindra on Monday reported a 22% year-on-year (YoY) jump in standalone net profit to₹2,437 crore for the March quarter, while revenue climbed 24% YoY to₹31,609 crore — both surpassing Dalal Street estimates. Consolidated profit after tax grew 20% YoY to₹3,295 crore during the quarter, with revenue from operations up 20% YoY at₹42,599 crore. The automaker's robust numbers were backed by double-digit growth across segments. Total vehicle sales rose 18% YoY to 2,53,028 units, including an 18% rise in utility vehicle (UV) volumes to about 1.49 lakh units and a 23% increase in tractor sales to 87,138 units. The company's revenue market share in autos expanded 310 basis points (bps) to 23.5% in Q4, while its farm segment market share improved by 170 bps to 43.3% for FY25. M&M's board recommended a dividend of ₹25.30 per share, marking a 20% increase for FY26, with a record date set for July 4, 2025. Following the results, the stock climbed as much as 2% on Monday to₹2,997 on the BSE. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), said, 'We continued our outstanding performance in Q4 FY25, recording a significant 310 bps YoY gain in SUV revenue share and a 480 bps YoY gain in the LCV ( Amarjyoti Barua, M&M's CFO, added, 'Our results include nearly₹10,000 crore of cash generation in FY25, enabling us to continue creating shareholder value through strategic investments.' Brokerages bullish on outlook Brokerages have largely maintained a bullish stance on the stock, citing robust growth prospects across M&M's core businesses. Motilal Oswal retained its 'Buy' rating with a target price of₹3,482, noting that the company 'reported a better-than-expected operating performance in Q4FY25. Believe M&M is well placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches across both the UV and tractor segments.' The brokerage has raised earnings estimates by 4% and 6% for FY26 and FY27, forecasting a revenue and EBITDA CAGR of about 13% over FY25- 27. Nuvama also kept its 'Buy' call with an unchanged target price of₹3,700. 'Growth prospects robust. Expect the auto segment's revenue CAGR to be 16% on healthy demand for Thar, XUV 3XO and XEV.9e along with a pipeline of new models,' Nuvama said, projecting revenue and core earnings CAGR of 15% and 18%, respectively, over FY25-27, with return on invested capital sustained above 55%.
Time of India
06-05-2025
- Automotive
- Time of India
Mahindra & Mahindra shares in focus as Q4 results beat estimates. Should you buy, sell, or hold?
Live Events Brokerages bullish on outlook (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Mahindra & Mahindra (M&M) are set to be in focus on Tuesday after the auto major posted stronger-than-expected March quarter results and announced a sharp hike in its annual dividend, drawing positive commentary from & Mahindra on Monday reported a 22% year-on-year (YoY) jump in standalone net profit to Rs 2,437 crore for the March quarter, while revenue climbed 24% YoY to Rs 31,609 crore — both surpassing Dalal Street estimates. Consolidated profit after tax grew 20% YoY to Rs 3,295 crore during the quarter, with revenue from operations up 20% YoY at Rs 42,599 automaker's robust numbers were backed by double-digit growth across segments. Total vehicle sales rose 18% YoY to 2,53,028 units, including an 18% rise in utility vehicle (UV) volumes to about 1.49 lakh units and a 23% increase in tractor sales to 87,138 units. The company's revenue market share in autos expanded 310 basis points (bps) to 23.5% in Q4, while its farm segment market share improved by 170 bps to 43.3% for FY25.M&M's board recommended a dividend of Rs 25.30 per share, marking a 20% increase for FY26, with a record date set for July 4, 2025. Following the results, the stock climbed as much as 2% on Monday to Rs 2,997 on the Jejurikar, Executive Director & CEO (Auto and Farm Sector), said, 'We continued our outstanding performance in Q4 FY25, recording a significant 310 bps YoY gain in SUV revenue share and a 480 bps YoY gain in the LCV (<3.5T) market share. In tractors, we achieved our highest-ever Q4 market share at 41.2%, up 180 bps YoY.'Amarjyoti Barua, M&M's CFO, added, 'Our results include nearly Rs 10,000 crore of cash generation in FY25, enabling us to continue creating shareholder value through strategic investments.'Brokerages have largely maintained a bullish stance on the stock, citing robust growth prospects across M&M's core Oswal retained its 'Buy' rating with a target price of Rs 3,482, noting that the company 'reported a better-than-expected operating performance in Q4FY25. Believe M&M is well placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches across both the UV and tractor segments.'The brokerage has raised earnings estimates by 4% and 6% for FY26 and FY27, forecasting a revenue and EBITDA CAGR of about 13% over FY25- also kept its 'Buy' call with an unchanged target price of Rs 3, read | M&M Q4 Results: Standalone PAT jumps 22% YoY to Rs 2,437 crore; dividend declared at Rs 25.30/share 'Growth prospects robust. Expect the auto segment's revenue CAGR to be 16% on healthy demand for Thar, XUV 3XO and XEV.9e along with a pipeline of new models,' Nuvama said, projecting revenue and core earnings CAGR of 15% and 18%, respectively, over FY25-27, with return on invested capital sustained above 55%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
05-05-2025
- Automotive
- Time of India
Mahindra & Mahindra Q4 results: Profit rises 13.34 per cent to Rs 3,542 crore on auto, farm sector strength
NEW DELHI: Mahindra & Mahindra Ltd reported a 13.34 per cent year-on-year increase in consolidated net profit to Rs 3,541.85 crore for the fourth quarter ending March 31, 2025, up from Rs 3,124.94 crore in the same period last fiscal. The performance was driven by robust growth in its automotive and farm equipment segments. Consolidated revenue from operations for the quarter rose to Rs 42,585.67 crore, marking a strong 20.4 per cent increase from Rs 35,373.34 crore in the corresponding quarter last year. Total expenses also climbed to Rs 39,113.61 crore, up from Rs 32,172.17 crore. For the full fiscal year FY25, Mahindra & Mahindra posted a consolidated profit after tax of Rs 14,073.17 crore, a 14.7 per cent rise over Rs 12,269.82 crore in FY24. Consolidated revenue surged to Rs 1,58,749.75 crore from Rs 1,38,279.30 crore. The company's auto segment continued its growth trajectory with Q4 sales volume rising 18 per cent to 2.53-lakh units, including 1.49-lakh SUVs. Tractor sales also recorded a robust 23 per cent jump to 87,138 units, contributing to a Q4 market share high of 41.2 per cent in the segment. Electric vehicle traction also gained momentum, with over 6,300 units of its new EVs – the EV 9e and BE 6 – delivered within just over a month. While urban demand showed signs of pressure, rural markets remained a key growth driver. Looking ahead, Mahindra is targeting a ramp-up in monthly vehicle output from 61,500 to 85,000 units by the end of FY26, pushing its annual installed capacity beyond one million units. It also aims to increase production capacity for its XUV3X0 and Thar ROXX models by 3,000 units this fiscal, while Chakan, Pune, will see an additional 1.2-lakh unit platform capacity. A new passenger vehicle manufacturing plant is planned to be operational by March 31, 2028. While the location is yet to be finalised, financial provisions have been made as part of the company's capital expenditure. The plant will focus primarily on passenger vehicles, though it may support other segments depending on future strategy and state-level incentives. A new vehicle platform will be unveiled on August 15, 2025. By 2030, the company aims to have a diversified portfolio that includes ICE SUVs, five battery electric vehicles (BEVs), and five light commercial vehicles (LCVs). The board has recommended a final dividend of Rs 25.30 per share, reflecting the company's strong cash generation of nearly Rs 10,000 crore in FY25, as highlighted by Group CFO Amarjyoti Barua. Group CEO & Managing Director Anish Shah attributed the strong results to excellent execution and continued gains in market share and profitability across the automotive and farm equipment sectors. "We have delivered strong growth on the back of stellar execution in F25. Auto and Farm continue to gain market share and expand profitability. TechM is making commendable progress towards its dual objectives of strengthening client positioning and margin expansion," he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
05-05-2025
- Automotive
- Time of India
Mahindra's EV biz turns EBITDA positive; profitability still a long road ahead
New Delhi: Mahindra and Mahindra (M&M) has said that its electric vehicle (EV) business has turned EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) positive, while profitability will take time, its top executive said. "The business will take a few more years to become fully profitable," said Amarjyoti Barua, Group Chief Financial Officer, M&M, during the post-earnings call for FY25. The company expects continued cash burn from exporting its BEVs (born electric vehicles) due to high initial costs, Barua added. The Indian conglomerate, which holds a 23 per cent revenue market share in the SUV segment with flagship products such as the Scorpio, Thar Roxx, and Scorpio N Line, is showing similar performance in the EV segment, capturing a leading 37.2 per cent revenue market share in the e-SUV category. The booking value for the automaker's electric twins has crossed ₹8,472 crore so far. Mahindra's BEVs, the XUV 9e and BE 6, have received more than 30,000 bookings, with 6,300 units delivered to date. 'We have a waiting period of more than four–five months for our EVs,' said Anish Shah, Group CEO and Managing Director, M&M. Capacity Expansion and Road Ahead The company is eyeing the European Union as a key export destination for its BEVs in the coming years, although the company has not disclosed a specific timeline. The automaker will target both North America and the EU for overseas expansion, with the EU as a priority, informed Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. It will also announce a new platform version on August 15, 2025, though it remains undisclosed whether it will be tailored for EVs or ICE (Internal Combustion Engine) vehicles. Mahindra also plans to launch five BEVs and seven SUVs by 2030, with two BEVs scheduled for launch this year. To meet rising demand, the company is pursuing aggressive capacity expansion, with plans to achieve an exit capacity of 7,500 units (5,000 operationalised) in FY25, 12,000 units (8,000 operationalised) in FY26, and 18,000 units in FY27. Additionally, Mahindra will be setting up a new greenfield plant by FY28, primarily dedicated to the company's passenger vehicle (PV) business, according to senior management.
