M&M Q1 results: Adjusted profit jumps 23% on strong car and tractor sales

India's Mahindra & Mahindra (M&M), on Wednesday, reported a 23% jump in adjusted profit for the first quarter, helped by an increase in sales of its sport utility vehicles (SUVs) and a rebound in demand for tractors.

The company's standalone net profit rose to Rs 2,613 crore ($312 million) in the quarter, from the Rs 2,120 crore  year-ago profit that was boosted by a gain on the sale of its stake in two units.

Including that year-ago gain, M&M's profit fell 5.3 per cent year-over-year in the latest quarter.

M&M's shares fell as much as 1.7 per cent immediately after the results, before reversing course to trade up 1 per cent in the afternoon session.

The company, which makes the 'Scorpio' SUV, said total revenue grew 12 per cent to Rs 27,039 crore.

M&M's car sales, almost entirely SUVs, jumped an industry-leading 24 per cent, according to industry data, while tractor sales increased 5.6 per cent in the fiscal first quarter. Tractor sales had fallen 7 per cent in fiscal 2024.

Overall, auto sales, including personal and commercial vehicles, grew 13.1 per cent, to Rs 18,947 crore in the quarter, accounting for two-thirds of total revenue, the company reported.

Sales in the higher-margin farm equipment business rose 9.2 per cent, M&M said.

Expenses rose by a tenth, mainly due to higher costs of raw materials such as aluminium, copper and rubber.

Maruti Suzuki India, M&M's rival and the country's top carmaker by sales, will report results later in the day.