Mahindra Q2 Seen Profit May Go Up By 9%

Utility vehicle and farm equipment maker Mahindra & Mahindra (M&M) is expected to report a 9.5 per cent growth in second quarter consolidated profit at Rs 1,070.8 crores on yearly basis, according to analysts’ poll.

Consolidated numbers included Mahindra Vehicle Manufacturers earnings. Revenue may grow 17 per cent year on year to Rs 10,277 crores, driven by volume growth of 18.6 per cent.

Experts expect a strong quarter due to healthy volume growth led by tractors. Total volumes grew by 18.6 per cent year on year to 1.87 lakh from 1.58 lacs units. Auto sales volumes increased 11.5 per cent year on year to 1.26 lacs units, driven by launch of compact SUV models KUV 100 and TUV 300. Tractor volumes jumped 36 per cent at 61,658 units, which picked up significantly in September due to good monsoon.

The company earns 40 per cent of its profit from the tractor business. EBITDA (earnings before interest, tax, depreciation and amortisation) is expected to witness an increase of 19.3 per cent year on year to Rs 1,387 crores and margin may expand 30 basis points to 13.5 per cent in Q2.

On standalone basis, profit in Q2 may increase 15 per cent to Rs 1,062.8 crores and revenue is seen rising 11 per cent to Rs 10,247 crores compared with year ago period. EBITDA may grow 26 per cent to Rs 1,293 crores and margin may expand 160 basis points to 12.6 per cent.

Mahindra share price closed at Rs 1,321.30, down by 1.53 per cent or 20.45 points in yesterday’s trading session. A total of 12,56,420 shares of the company have been traded on the counter of NSE aggregating to a total amount of Rs 16,754.11 lacs on 10th November 2016.

Check Mahindra share price history for the historical share price forecast of Mahindra.