Indian automaker Mahindra & Mahindra (M&M) is anticipated to report a substantial increase in revenue and automobile volume, according to IIFL Securities. The company is expected to post a 20% growth in revenue compared to the year-ago quarter and a 6% sequential increase.
The revenue share in the tractor segment is also projected to rise from 24% in the September quarter to 26% in the December quarter. The tractor volume is expected to grow by 13% sequentially due to the seasonality factor, but it may fall by 4% compared to the year-ago quarter due to weak demand.
The EBIT margin of the auto segment is estimated to come in at 7.4%, while that of tractors is seen at 16.5%. Overall EBITDA margin is pegged at 12.4%, down 59 basis points over the year-ago quarter and 20 basis points sequentially. Profit after tax (PAT) is expected to grow 5% over the year-ago quarter and fall by 26% sequentially.
Analysts have noted that while tailwinds may include a decrease in metal prices, they will closely monitor pricing actions by the company and the demand trend across markets. In the previous quarter that ended in September, Mahindra & Mahindra reported a 15% dip in consolidated net profit to ₹2,348 crore. The company’s net profit had declined by 33% sequentially to ₹3,508 crore in the previous quarter.
It remains to be seen whether Mahindra & Mahindra will meet these expectations and what factors may contribute to its performance in the coming quarter. The market will be watching closely to see how the company navigates the changing landscape of the automobile and tractor segments, and how it adapts to shifting demand and pricing dynamics. Overall, the outlook for Mahindra & Mahindra seems promising, with potential for significant growth in both revenue and automobile volume.
