Result Update Report for FY25Q1: Mahindra & Mahindra Ltd
1. About
Mahindra & Mahindra Ltd (M&M) is a leading Indian multinational conglomerate headquartered in Mumbai, India. It operates in multiple sectors including automotive, farm equipment, financial services, and information technology. M&M is one of the largest vehicle manufacturers by production in India and the world's largest tractor company by volume. The company has a strong market presence in utility vehicles, passenger cars, pickups, and commercial vehicles, and is expanding its footprint in electric vehicles and renewable energy.
2. Business
- Automotive Segment Leadership: M&M holds a dominant position in the Indian SUV market with a diversified product portfolio, including popular models like Scorpio, XUV700, Thar, and the newly launched XUV 3XO.
- Farm Equipment Dominance: The company is the world's largest tractor manufacturer by volume, with strong brands like Mahindra and Swaraj, catering to both domestic and international markets.
- Focus on Electric Vehicles: M&M is investing heavily in electric mobility solutions, planning to launch eight new EVs by 2027, and has allocated significant capital for EV development.
- Diverse Business Portfolio: Beyond automotive and farm equipment, M&M has interests in IT services through Tech Mahindra, financial services, and renewable energy, enhancing its revenue streams.
3. Why We Like Mahindra & Mahindra
- Strong Market Position: M&M's leadership in key segments provides a competitive edge and sustainable revenue growth.
- Robust Financial Performance: Consistent revenue growth and improving profitability margins demonstrate financial stability and operational efficiency.
- Strategic Focus on EVs: The company's aggressive investment in electric vehicles positions it well to capitalize on the growing EV market in India and globally.
- Innovation and R&D Excellence: Record 674 patents in FY24 reflect M&M's commitment to innovation, enhancing its product offerings and technological capabilities.
4. Recent Updates
- Q1 FY25 Financial Performance: M&M reported strong financial results with revenue of INR 37,217.72 crores and net profit of INR 3,282.63 crores, showing significant growth over previous periods.
- Launch of XUV 3XO: The company launched the XUV 3XO Compact SUV at a starting price of INR 7.49 lakh, receiving over 50,000 bookings within 60 minutes of opening.
- Investment in EV Subsidiary: M&M approved an investment of INR 12,000 crores in Mahindra Electric Automobile Limited to fund its EV journey over the next three years.
- Acquisition in Renewable Energy: The company acquired a 26% stake in Gelos Solren Private Limited, emphasizing its commitment to sustainable energy solutions.
5. Financial Projections
| Metric |
FY25E |
FY26E |
FY27E |
| Revenue (INR Crores) |
145,000 |
160,000 |
176,000 |
| EBITDA (INR Crores) |
28,200 |
31,200 |
35,200 |
| OPM (%) |
19.45% |
19.50% |
20.00% |
| PAT (INR Crores) |
12,500 |
14,500 |
17,000 |
| EPS (INR) |
100.5 |
116.5 |
136.5 |
| P/E |
19x |
17x |
14x |
| RoCE (%) |
14% |
16% |
18% |
| ROE (%) |
18% |
20% |
22% |
6. Conclusion
Mahindra & Mahindra Ltd continues to demonstrate strong operational and financial performance, backed by strategic initiatives in electric mobility and renewable energy. Its leadership position in core segments, commitment to innovation, and robust financial health make it an attractive investment opportunity.