Utility vehicle and tractor maker Mahindra and Mahindra 's (M&M) first quarter profit on standalone basis is seen rising 2 percent year-on-year to Rs 870 crore, according to average of estimates of analysts polled by CNBC-TV18. Revenue is
likely to grow 11.5 percent to Rs 11,080 crore in April-June quarter compared with Rs 9,830.4 crore in same period last year on healthy volume growth in auto and tractors segments. Analysts expect a good quarter as tractors did well due to good monsoon and low base. New launches in the utility vehicle segment, KUV100 and TUV300 have seen good demand. M&M sold 1.96 lakh units in Q1, a growth of 14 percent over a year-ago period. Auto sales grew by 10.9 percent to 1.21 lakh units and tractor volumes increased 19.6 percent to 74,594 units YoY. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) may increase 12.6 percent YoY to Rs 1,410 crore but margin may shrink to 12.6 percent from 12.74 percent. Margin may improve on sequential basis due to better product mix but expiry of excise incentives at Uttaranchal can impact EBITDA growth. Analysts say product mix is likely to improve QoQ due to higher share of tractor sales. Net realisations are expected to be stable at Rs 5.49 lakh per unit during the quarter against Rs 5.48 lakh per unit in same period last year. Profit on consolidated basis (M&M + MVML) may rise 5 percent to Rs 871 crore and revenue 12.6 percent to Rs 10,627 crore in Q1. Operating profit is seen rising 8.6 percent to Rs 1,470 crore but margin may contract to 13.8 percent from 14.3 percent YoY. Full year guidance for tractors will be closely watched.
0 comments:
Post a Comment