M M raises tractor growth forecast, maintains SUV sales optimism
Subscribe to enjoy similar stories. New Delhi: Homegrown automaker Mahindra and Mahindra Ltd (M&M) has raised its forecast for tractor sales for the industry, anticipating strong growth fuelled by rising rural demand as government spending in the rural and agricultural regions goes up. The company now expects tractor industry sales to grow by 13-14% in the second half of the year, adjusting its full-year projection to 6-6.8%, up from an earlier estimate of 5%, a top company official said during its second quarter earnings press conference on Thursday.
Simultaneously, M&M remains confident of achieving 15-18% growth in the passenger vehicle (PV) segment in FY25, driven by new launches and a strategic pricing strategy amid a broader sluggishness in the PV market. M&M reported a 35% year-on-year jump in its consolidated net profit to ₹3,171 crore for the second quarter of FY25. Its auto business recorded its highest-ever quarterly dispatches at 231,038 units, a growth of over 9% over the corresponding period last year.
M&M’s tractor sales during the quarter rose 4% YoY to 92,382 units. Also read | The Mahindra-Volkswagen deal: How they plan to do it On a standalone basis, M&M made a net profit of ₹3,841 crore for Q2FY25, a 13% increase from the previous year. Most notably, despite reducing prices by up to ₹2 lakh across for the top variants of its flagship XUV700 SUV, higher sales volumes and the resultant operational leverage led the company to improve its Ebitda margin for the standalone auto business by 190 basis points to 14.2% from 12.3% a year ago.
Net revenue per vehicle during this quarter was up 10% year-on-year, it said. Ebitda is short for earnings before interest, taxes, depreciation and amortization. The
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