M&M Q4 Preview: Volume to drive 7% YoY revenue growth but tractor sales may disappoint
Three brokerages expect the auto major’s net profit to be in the range of Rs 1,777 cr - Rs 2,079 crore. The revenue from operations is expected at Rs 24,051 crore. M&M had reported a standalone PAT of Rs 1,549 crore and revenue of Rs 22,571 crore in the last-year period.
Auto major Mahindra & Mahindra (M&M) is expected to report a net between Rs 1,777 crore and Rs 2,079 crore for the quarter ended March 31, 2024, according to estimates of a couple of . While sees a 7% year-on-year jump in profit after tax (PAT), estimates a 1% YoY increase.The company is expected to report a revenue from operations at Rs 24,051 crore according to average estimates of three brokerages, with an expected average rise of 7%. Among brokerages, sees revenue at Rs 23,943 crore while pegs it at Rs 23,815 crore. , on the other hand, sees the same at Rs 24,397 crore.
M&M had reported a standalone PAT of Rs 1,549 crore and revenue of Rs 22,571 crore in the corresponding quarter of the previous financial year.
M&M will announce its on Thursday, May 16.
Here's what brokerages recommended:
Nomura
The PAT for the quarter under review is expected around Rs 1,777 crore, up 7% over Rs 1,667 crore reported in Q4FY23. On a sequential basis, it is predicted to come down by 28% versus Rs 2,454 crore reported in Q3FY24. The revenue from operations is seen at Rs 23,943 crore, which will likely be 6% higher on YoY basis while declining by 5% QoQ.The earnings before interest, taxes, depreciation and amortisation (EBITDA) is expected to go up 3% on a YoY basis to Rs 2,892 crore in Q4FY24. On the QoQ basis, an 11% fall is expected. Meanwhile may go down by 31 bps in the January-March quarter at 12.1%. Sequentially, a 72 bps decline is envisaged.
Growth in revenue is expected to be boosted by that in with a 14% jump, while tractor volumes are expected to decline 20% YoY. EBITDA margin is likely to decline on a weak tractor mix.
ICICI Securities
M&M is expected to report an of Rs 2,079 crore, up by 1% on YoY basis and down by 15% on QoQ basis. The revenue for the reporting quarter is estimated at Rs 23,815 crore, up 6% YoY and down by 6% QoQ. The EBITDA will likely be at 2,876 crore, up by 3% YoY and down by 11% QoQ.
ICICI Securities remains positive on M&M, arguing that and stronger profitability would likely help re-rate the stock ahead amid the possibility of FY25 being another soft year for the tractor segment.
Nuvama
Nuvama sees revenue at Rs 24,397 crore, which will be 8% up YoY and down by 4% QoQ. EBITDA is estimated at Rs 3,226 crore, up 15% YoY and flat on QoQ basis.
JM Financial
M&M’s auto EBIT margin is expected to be 8.5%, up by 20 bps on QoQ basis, led by a favourable mix and lower marketing spends.
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Source: Stocks-Markets-Economic Times
