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Mahindra and Mahindra (M&M) is expected to report solid earnings for the third quarter ended December 2024, led by growth across segments and better realisations.
Revenue from operations in the third quarter is likely to jump 22% year-on-year (YoY), according to an average estimate of four brokerages. Net profit, meanwhile, is seen rising upwards of 30% YoY.
The auto major clocked robust growth in volumes in both the auto and farm segments. While auto volumes were up 17% YoY, that of farm segments rose 20% YoY in Q3.
Analysts also estimate overall EBITDA margins to improve 200 bps YoY, led by a richer segmental mix (higher mix of tractor segment), operating leverage benefit and cost-control measures.
Here’s what analysts expect from M&M’s Q3:
Nuvama
Robust revenue growth shall be supported by an increase in auto/farm volumes and better realisation. EBITDA margin shall expand on better margins in the tractor segment. Key things to track is order bookings for EVs and demand outlook for tractors.
Motilal Oswal
While auto volumes were up 17% YoY, tractors posted a smart recovery with a 20% YoY growth in 3Q. While tractor segment margins should improve 100bps QoQ to 18.5%, auto segment margin is likely to decline 50 bps QoQ to 9% due to high discounts and increased promotional spends in 3Q.
Kotak Equities
It estimates a 21% YoY increase in revenues in 3QFY25, led by 26% YoY growth in tractor segment revenues, mainly due to a 20% YoY increase in volumes and 19% YoY rise in the automotive segment’s revenues, driven by a 17% YoY increase in volumes driven by SUV and export segments.
“We are building an automotive EBIT margin of 9% in 3QFY25 versus 9.5% in 2QFY25 and 8.3% in 3QFY24. In addition, we are building tractor segment EBIT margin to improve by 310 bps YoY to 18.6% due to operating leverage benefits and a richer product mix,” the brokerage stated.
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Revenue from operations in Q3 is expected to surge 22% YoY, based on estimates from four brokerages, while net profit may rise over 30% YoY. Strong volume growth drove this performance, with auto segment sales up 17% YoY and farm segment sales increasing 20% YoY, reflecting the auto major’s solid momentum in both markets.
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Mahindra and Mahindra (M&M) is expected to report solid earnings for the third quarter ended December 2024, led by growth across segments and better realisations.
Revenue from operations in the third quarter is likely to jump 22% year-on-year (YoY), according to an average estimate of four brokerages. Net profit, meanwhile, is seen rising upwards of 30% YoY.
The auto major clocked robust growth in volumes in both the auto and farm segments. While auto volumes were up 17% YoY, that of farm segments rose 20% YoY in Q3.Analysts also estimate overall EBITDA margins to improve 200 bps YoY, led by a richer segmental mix (higher mix of tractor segment), operating leverage benefit and cost-control measures.
Here’s what analysts expect from M&M’s Q3:
Nuvama
Robust revenue growth shall be supported by an increase in auto/farm volumes and better realisation. EBITDA margin shall expand on better margins in the tractor segment. Key things to track is order bookings for EVs and demand outlook for tractors.
Motilal Oswal
While auto volumes were up 17% YoY, tractors posted a smart recovery with a 20% YoY growth in 3Q. While tractor segment margins should improve 100bps QoQ to 18.5%, auto segment margin is likely to decline 50 bps QoQ to 9% due to high discounts and increased promotional spends in 3Q.
Kotak Equities
It estimates a 21% YoY increase in revenues in 3QFY25, led by 26% YoY growth in tractor segment revenues, mainly due to a 20% YoY increase in volumes and 19% YoY rise in the automotive segment’s revenues, driven by a 17% YoY increase in volumes driven by SUV and export segments.“We are building an automotive EBIT margin of 9% in 3QFY25 versus 9.5% in 2QFY25 and 8.3% in 3QFY24. In addition, we are building tractor segment EBIT margin to improve by 310 bps YoY to 18.6% due to operating leverage benefits and a richer product mix,” the brokerage stated.