Strong SUV orders to support earnings | Tech US News

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Strong orders for SUVs and improving chip supply will help the company’s earnings recovery.

Wealth table
Wealth table

Mahindra & Mahindra Ltd. will be the last of the auto companies to report its September quarter earnings on Friday, November 11. A strong recovery in volumes will be a key contributor to the company’s earnings performance.

A survey by CNBC-TV18 expects revenue to grow by around 50 percent from the same period last year, while EBITDA margin is likely to remain flat.

Strong orders for SUVs and improving chip supply will help the company’s earnings recovery.

Total volume for the September quarter rose 43.3 percent year-on-year to 2.73 lakh units.

Mahindra & Mahindra sold its highest ever monthly volume of around 65,000 vehicles in September. Three-wheeler sales were also the highest in a month, as were SUVs.

EBITDA margin, though expected to decline on a year-on-year basis, is likely to improve sequentially, supported by the price increases undertaken by the company.

One of the key factors to watch is the demand for tractors during the upcoming festive season.

M&M’s tractor sales in September were also the highest ever with exports increasing by 26%.

Shares of Mahindra & Mahindra have gained 57% this year and are among the top gainers in the Nifty Auto Index as well as the Nifty 50 Index.

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