Mahindra & Mahindra Ltd is expected to report strong double-digit growth in earnings for the quarter ended December, aided by robust performance of the automotive segment, favourable product mix, and operating leverage benefits.

Net profit for the quarter is seen rising 21.2% year-on-year (YoY) to Rs 2,428.30 crore, according to the average of estimates given by seven brokerage firms.

Revenue is likely to increase 16.5% YoY to Rs 25,216 crore, led by strong growth in volumes in the automotive segment, which will offset the weakness in the tractor segment.

Operating profit, calculated as earnings before interest, taxes, depreciation and amortization or EBITDA, is likely to grow 14% on year to Rs 3,213 crore.

Sequentially, the revenue is seen rising a moderate 4% and operating profit by nearly 5%, but the net profit may decline by 30%.

The “Scorpio” SUV maker is slated to release its quarterly numbers on Wednesday. Here’s summarising the expectations of analysts from the Mahindra Group company:

Motilal Oswal Financial

Strong volume growth seen in autos (improving supply chain) but tractors declined on a high base of last year and uneven rainfall. A sequential improvement of 10 bps in EBITDA margin, despite a weaker mix, to be largely led by operating leverage.

PBIT margin is likely to contract 70 bps QoQ to 8.3% for autos due to lower volumes sequentially, while farm equipment segment margin is likely to improve 40 bps QoQ to 16.4% due to higher volumes sequentially.

Nuvama Institutional Equities

Revenue growth YoY to be supported by robust performance in the auto segment and better realizations in both Auto/Farm segments. EBITDA margin to marginally expand, as better net pricing is being mostly offset by adverse mix and higher marketing spends. We will watch out for auto production and tractor demand.

Kotak Institutional Equities

We estimate a 15% YoY increase in revenue led by an over 22% increase in the automotive segment revenues, driven by a 20% growth in volumes, and flat revenue in the tractor segment revenues, mainly due to a 4% decline in tractor segment volumes.

We estimate overall EBITDA margin to remain flat QoQ led by a richer segmental mix (tractor segment volume mix stood at 32.5% in 3QFY24 versus 29% in 2QFY24) and operating leverage benefit, partly offset by (1) higher mix of farm implements (loss-making business) and (2) higher advertisement spends on account of the Cricket World Cup during the quarter. We are building automotive EBIT margins of 7.5% in 3QFY24 versus 9% in 2QFY24, led by higher marketing spends.

In addition, we are building in the tractor segment EBIT margin to increase by 60 bps QoQ to 16.6% due to operating leverage benefits.


Revenue to grow 5% QoQ led by 4% growth in volumes. EBITDA margin to decline 40 bps QoQ due to higher other expenses on the back of the Cricket World cup-led higher marketing expenses.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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