Utility vehicle maker Mahindra & Mahindra
's (M&M) standalone profit after tax is expected to grow by 11.2
percent year-on-year and 13 percent quarter-on-quarter to Rs 820 crore
in the quarter ended September 2012.
Revenues are seen going up by 30 percent YoY and 2.5 percent QoQ to Rs 9,600 crore during the same period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to go up by 22 percent to Rs 1,071 crore in the July-September quarter of current financial year from Rs 874 crore in a year ago period. But the same is likely to fall marginally on QoQ basis.
Operating profit margin is expected to be at 11.2 percent in the second quarter as against 11.8 percent in the corresponding quarter of last fiscal.
The second quarter performance is not strictly comparable YoY due to merger of MADPL (erstwhile Mahindra Renault) in Q4FY12.
What to watch out for:
M&M has been a consistent performer for many quarters led by strong volume growth in the auto division. Some analysts, however, have started to get cautious about the sustenance of growth in auto sector due to dearth of new launches, competition in utility vehicle space and longer than expected time for tractor segment to revive.
M&M's margin is likely to decline slightly due to weaker product mix (lower proportion of high margin tractors in sales) and potential discounting in tractor business.
Adjusted margin is also expected to decline further due to higher share of Mahindra Vehicle Manufacturers Limited (MVML).
Analysts on an average feel the average realizations will decline 0.6 percent QoQ to Rs 5,05,000 per unit.
Other income is likely to be higher QoQ at around Rs 260 crore which will aid profit growth.
Investors should watch out for new launch schedule and recovery in tractor sales.
Management had guided tractor growth of 0-2 percent in FY13 due to weakness in monsoon and lower construction/infra activity.
According to analyst, recent launch of refreshed Verito and Quanto (mini SUV based on XYLO platform) should help sustain healthy growth momentum.
Investors should watch out for response to its recently launched Rexton from the Ssangyong platform (premium UV segment that priced much lower than market leader Toyota Fortuner).
Volume growth in the July-September quarter: Auto sector growth was strong, but mitigated by weakness in tractor volumes.
Revenues are seen going up by 30 percent YoY and 2.5 percent QoQ to Rs 9,600 crore during the same period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to go up by 22 percent to Rs 1,071 crore in the July-September quarter of current financial year from Rs 874 crore in a year ago period. But the same is likely to fall marginally on QoQ basis.
Operating profit margin is expected to be at 11.2 percent in the second quarter as against 11.8 percent in the corresponding quarter of last fiscal.
The second quarter performance is not strictly comparable YoY due to merger of MADPL (erstwhile Mahindra Renault) in Q4FY12.
What to watch out for:
M&M has been a consistent performer for many quarters led by strong volume growth in the auto division. Some analysts, however, have started to get cautious about the sustenance of growth in auto sector due to dearth of new launches, competition in utility vehicle space and longer than expected time for tractor segment to revive.
M&M's margin is likely to decline slightly due to weaker product mix (lower proportion of high margin tractors in sales) and potential discounting in tractor business.
Adjusted margin is also expected to decline further due to higher share of Mahindra Vehicle Manufacturers Limited (MVML).
Analysts on an average feel the average realizations will decline 0.6 percent QoQ to Rs 5,05,000 per unit.
Other income is likely to be higher QoQ at around Rs 260 crore which will aid profit growth.
Investors should watch out for new launch schedule and recovery in tractor sales.
Management had guided tractor growth of 0-2 percent in FY13 due to weakness in monsoon and lower construction/infra activity.
According to analyst, recent launch of refreshed Verito and Quanto (mini SUV based on XYLO platform) should help sustain healthy growth momentum.
Investors should watch out for response to its recently launched Rexton from the Ssangyong platform (premium UV segment that priced much lower than market leader Toyota Fortuner).
Volume growth in the July-September quarter: Auto sector growth was strong, but mitigated by weakness in tractor volumes.
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