Mahindra & Mahindra is set to report its Q2 results on Thursday.
What Happened: Mahindra & Mahindra is expected to announce a 3.86% year-on-year rise in net profit to ₹3,585.2 crore, based on an average of brokerage estimates. The auto major’s revenue is expected to come in at 27,182.3 crore, an increase of 11.8% from the previous year.
| Brokerage | Revenue | EBITDA | Net Profit |
|---|---|---|---|
| Motilal | 27,200 | 3,700 | 3,370 |
| Kotak | 27,505.2 | 4,013.8 | 4,160.7 |
| Nuvama | 26,815.8 | 3,704.3 | 3,383 |
| Elara | 27,208.2 | 3,754.7 | 3,430.1 |
| Average | 27,182.3 | 3,793.2 | 3,585.95 |
Motilal Oswal said auto volumes grew 13% year on year and tractor volumes increased by 6%. The brokerage expects the firm’s EBITDA margin to contract 140 basis points due to a weaker mix.
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Kotak Institutional Equities expects a 13% increase in revenue due to 8% growth in tractor revenue and a 15% increase in automotive segment revenue due to strong improvement in average selling price.
The research firm also expects its EBITDA margin to decline due to an inferior segment mix where tractor segment volume stood at 23% compared to 30% in the previous quarter. The negative operating leverage also partly offsets raw material tailwinds, the brokerage firm added.
Price Action: Shares of Mahindra & Mahindra were up 0.45% to ₹2,912.40 on Wednesday ahead of the company’s results.
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