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Indian automaker Mahindra & Mahindra (M&M) is expected to report strong growth in revenue and automobile volume.
According to IIFL Securities, the company is likely to post 20 per cent growth in revenue compared to the year-ago quarter and 6 per cent sequentially.
The company’s revenue share in the tractor segment is expected to increase from 24 per cent in the September quarter to 26 per cent in the December quarter. Aided by the seasonality factor the tractor volume could grow 13 per cent sequentially but fall by 4 per cent to the year-ago quarter on weak demand.
“The EBIT margin of the auto segment could come in at 7.4 per cent, while that of tractors is seen at 16.5 per cent. Overall EBITDA margin is pegged at 12.4 per cent, down 59 basis points over the year-ago quarter and 20 basis points sequentially,” according to IIFL Securities.
Profit after tax (PAT) is expected to grow 5 per cent over the year-ago quarter and fall 26 per cent sequentially.
Analysts have mentioned that while tailwinds would include a fall in metal prices, they will watch out for pricing actions by the company and the demand trend across markets.
Mahindra & Mahindra had reported a 15 per cent dip in consolidated net profit to ₹2,348 crore in the quarter that ended in September. The company’s net profit had declined by 33 per cent sequentially to ₹3,508 crore in the previous quarter.
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