Latest news with #MahindraandMahindraLtd
Mint
30-07-2025
- Automotive
- Mint
Mahindra continues to rake in profits as SUV sales surge
Mahindra and Mahindra Ltd registered a fourth consecutive quarter of more than a 20% jump in net profit, as the maker of Thar and Scorpio continued to see a surge in sales of sports utility vehicles (SUVs) despite a broader slowdown in demand for cars in India. The Mumbai-based automaker saw its profit surge by 24% to ₹ 4,376 crore, the company said in an exchange filing on Wednesday, as its pricier SUVs such as XUV700 logged better sales growth compared to the industry average and its closest rivals. Profit margins for the automobile business remained stable at around 10%, excluding the electric contract manufacturing business the firm does for its EV subsidiary. Thanks to a 22% jump in total passenger vehicle sales to 152,067 units in the first three months of the current fiscal year, Mahindra's revenue surged to ₹ 46,446 crore. The management highlighted during a call with media and analysts that its robust performance came despite the demand environment continuing to remain tough in urban areas. 'Fundamentals are in place in the market but the sentiments are hit. It should improve as the festive season begins,' Rajesh Jejurikar, executive director and chief executive officer (CEO) (auto and farm sector), Mahindra and Mahindra, said. But despite some weakness in the market, Jejurikar emphasised that the company will look to maintain mid-teen growth in SUV sales going forward. Jejurikar, who has led the company's auto and farm division for the past five years, successfully turned around the business, driving it to the second spot in the country's car market, behind Maruti, in the first quarter of the current financial year. Incidentally, his younger brother Shailesh Jejurikar was named the US-based consumer goods company Procter & Gamble's next chief executive on Tuesday. Anish Shah, Group CEO and managing director, M&M Ltd., said, 'Q1F26 has been an excellent quarter, with broad-based growth across all our businesses. The operating excellence in our auto and farm businesses is evident in continued market share gains and margin expansion.' Mahindra displaced Hyundai from the second place during the quarter, as the Korean giant logged a more than 11% decline in sales to 132,259 units. Hyundai, which reported its financials earlier in the day, marked a 8% decline in profit to ₹ 1,369 crore and also saw its revenue fall 5% to ₹ 16,628 crore. Shares of Mahindra settled 0.8% higher at ₹ 3,225 apiece on the NSE on Wednesday. So far this year, its stock has risen 5%, against a 3% increase in Nifty Auto index. With Mahindra's electric business also ramping up, the company expects to strengthen its SUV play. The company aims to dominate the revenue market share in the electric passenger vehicle segment, which was at 41% in the first quarter, far ahead of the second placed OEM at 25.9%. With domestic markets already firing on all cylinders, Jejurikar said during the results briefing that the focus will also be on boosting exports, which are starting to record some good numbers on the back of its SUVs finding traction, particularly in the African market. Exports during the first three months of the year saw a 36% jump to 7,125 units. While its auto segment continued its bull run, the largest tractor player of the country also saw growth in its farm business as tractor sales grew 10% to 132,964 units. With expectation of good monsoons and increasing market share, the management expects the growth to continue in this segment. Analysts remain bullish about the prospects of Mahindra, which has so far continued to beat domestic market slowdown blues. In the first quarter of the current financial year, the passenger vehicle market declined 1% to 1.01 million units. 'MM's recently unveiled XUV 3XO and Thar Roxx have received a healthy response. The company will continue to maintain a robust launch pipeline in the long run, targeting seven ICE SUVs (two mid-cycle enhancements), five BEVs, and five LCVs (two of which will be EVs) by 2030,' analysts at Motilal Oswal wrote in a 15 July note. 'Driven by a strong order backlog and new launches, we expect MM to continue outperforming industry growth in FY26,' they wrote. While the company is seeing a strong surge in sales, the management has highlighted that increasing commodity prices can have a bearing on the margins and prices going ahead.
Mint
29-04-2025
- Automotive
- Mint
Mahindra looks to use its EV playbook to strengthen foray into electric bus space via SML Isuzu acquisition
Mahindra and Mahindra Ltd is looking to borrow from its electric vehicle playbook to strengthen its foray into the electric bus market by acquiring commercial vehicle player SML Isuzu Ltd. The Chandigarh-based truck and bus manufacturer introduced the platform for developing electric buses in January at the Bharat Mobility Expo. The new e-bus portfolio was slated to be launched between April and June. 'SML is in advanced stages of developing its electric buses. We believe that the expertise we have through presence in multiple EV segments can strengthen the proposition and improve costs," Rajesh Jejurikar, executive director and chief executive officer (CEO), auto and farm sector, Mahindra and Mahindra Ltd, told reporters at a briefing on Monday. Mahindra is present in the electric passenger vehicle and three-wheeler segments. The entry into the electric bus space will see it compete with Tata Motors Ltd, Ashok Leyland Ltd, JBM Auto Ltd and Olectra Greentech Ltd. Mumbai-based Mahindra's entry into the electric bus space would come when the e-bus segment's growth has hit some speed bumps. In FY2025, e-bus sales in the country fell 6% to 3,314 units. However, Mahindra's entry into the space through SML and buoyant commentary by major players present in the segments suggest that hopes are high for the segment to grow. 'The EV bus market in India is doing exceptionally well. Switch India is likely to achieve Ebitda breakeven in FY25, and is hoping to treble volumes in FY26, on the back of 1,800+ e-bus orders in hand," Shenu Agarwal, managing director and CEO at Ashok Leyland, said after the announcement of discussions to withdraw from the UK's electric bus market. Also read: Electric bus makers set for a joyride as Delhi eyes full fleet electrification The Mahindra group's foray into the electric bus space is part of its broader strategy to strengthen its position in the higher than 3.5-tonne commercial vehicle space. As part of this strategy, it acquired SML Isuzu for ₹ 555 crore to increase its market share in the trucks and bus segment to 10-12% by FY2031 from 3% in FY2025. Through this acquisition, the company's market share in the light commercial vehicle bus segment has increased to 21% from 5%. In the less than 3.5-tonne vehicle segment or small commercial vehicle space, Mahindra has a more than 52% market share. 'We expect the bus segment to grow with time as there is going to be a greater movement of people as the economy grows," Jejurikar said. Also read: Govt isn't buying Ola Electric's service centre claims In FY2025, SML Isuzu sold more than 12,000 buses and trucks, as per Vahan data. Between October and December, the company's net profit had fallen 80.2% to ₹ 53 lakh. 'Post these two combined segments, we will become the 4th largest player in the trucks and buses segment. We see a lot of opportunities around cost, platform synergy, network and supplier synergy," Jejurikar said. Industry observers remain bullish about the prospects of the two players. "The collaboration between Mahindra Buses and SML Buses can help develop more affordable and reliable electric buses. The two can leverage shared technology, which can increase the range and operational efficiency," Sanyam Gandhi, whole-time director at Chartered Speed, said. Mahindra's share price ended 2.3% higher on Monday, while SML Isuzu's share closed 10% below its previous closing price, against a 1.6% surge in Nifty Auto.
