Mahindra & Mahindra Earnings Preview: M&M Q2 Preview: SUVs to rise, tractors to decline | Tech US News

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Mahindra & Mahindra is expected to report strong growth in sales and profit for the quarter ending September, driven by strong performance in the automotive segment, easing semiconductor supply, and rising prices. .

Strong earnings in the automotive segment will help offset sales declines in the tractor segment in a seasonally weak quarter.

Revenue for the quarter is seen growing over 54% to Rs 20,525 crore.
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“Growth in auto segment with better mix (17% QoQ) will offset decline in tractor segment in seasonally weak quarter,” brokerage

said in his report.

In September, M&M reported its highest ever monthly sales in the auto segment at 64,486 units, driven by continued traction in the sports utility segment.

Although sales are expected to grow strongly, operational performance will suffer due to high costs and weakness in the tractor segment.

“We estimate an overall EBITDA margin decline of 70 bps QoQ, led by inferior segmental mix and raw material impairment,” Kotak Institutional Equities said in a report.

Automotive margins are seen improving by 30 bps to 6% in Q2, Kotak Equities said. High raw material costs and an inferior product mix will inhibit margin expansion.

Net profit rose 31% year-on-year to Rs 1,875 crore on higher sales and higher other income, driven by dividend payments.

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(Disclaimer: Recommendations, advice, opinions and views given by experts are their own. They do not represent the views of Economic Times)

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