Revenue Rs 210,161 million, PAT Rs 23,237 million | Tech US News


Result Date: 11Th November, 2022
Recommendation: Buy.
Target price: Rs 1,350

Mahindra & Mahindra (M&M) saw auto volumes grow (over the year-ago quarter) by 77%, partly due to a lower base effect. Sequentially, auto volumes grew by 17 percent. M&M’s tractor volume increased 5% from the year-ago quarter, but declined 21% sequentially (partially due to a seasonal factor). Overall, revenue could grow 58 percent from the year-ago quarter. The share of tractors in total revenue may decline from 34% in Q1FY23 to 26% in Q2FY23.

Declining commodity prices, rising prices and operating leverage are key margin tailwinds while Scorpio’s negative revenue mix and introductory pricing are key headlines. Analysts at IIFL Securities estimate M&M’s auto EBIT margin at 7.1% and tractor EBIT margin at 16.0%.

The company’s profit after tax or PAT may grow by 38% compared to the year-ago quarter.

Key management insights to keep in mind:

  • Demand trends in key markets
  • Demand for tractors during festive season and H2FY23
  • Input cost, pricing, outlook on margins

including MVML

Estimated September 2022

QoQ change

YoY change
Automatic volume 179,683 17.1% 76.7%
Tractor volume 93,540 (21.1)% 5.2%
Revenue (Rs. Million) 210,161 7.2% 58.0%
EBITDA (Rsmn) 25,488 8.9% 53.6%
EBITDA margin 12.1% 19 bps (35) BPS
Profit After Tax (Rs Million) 23,237 58.0% 37.8%

Source: IIFL Research


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