M&M is likely to report a strong performance on a yearly comparison, while the sequential performance is seen muted by the analysts tracking the stock. 
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M&M is likely to report a strong performance on a yearly comparison, while the sequential performance is seen muted by the analysts tracking the stock. Homegrown auto major Mahindra & Mahindra (M&M) is set to announce its earnings for the period ended on March 31, 2023 on Friday. The company is likely to report a strong performance on yearly comparison, while the sequential performance is seen muted by the analysts tracking the stock. Brokerage firms expect M&M to report a flattish performance in terms of revenue and EBITDA on a quarter-on-quarter (QoQ) basis after the festive season, while year-on-year (YoY) numbers are seen as good. The company may report contractions in EBITDA margins, even after expansion of margin by automotive division by around 200 basis points (bps). Emkay Global Financial Service expects M&M to report a revenue at Rs 21,915.2 crore, rising 28 per cent YoY but flat on QoQ basis. EBITDA is seen at Rs 2,925.2 crore, increasing 50 per cent YoY and 4 per cnet QoQ, with a EBITDA margin at 13.3 per cent, expanding 200 bps YoY. PAT is seen at Rs 1,635.6 crore, up 40 per cent YoY but down 19 per cent QoQ. The brokerage expects its coverage companies to report revenue growth in Q4FY23E, led by healthy growth across segments. "We expect robust revenue growth of 32 per cent for M&M’s auto division. We expect margins to expand for CV companies by 200bps sequentially on higher volumes, price hikes, stable commodities and narrowing discounts," it added. Antique Stock Broking sees M&M's revenue at Rs 21,351.7 crore, rising 24.7 per cent YoY but with EBITDA at Rs 2,754.4 crore, up 41.6 per cent YoY. Net profit is seen at Rs 2,445.6 crore, up 33 per cent YoY. The brokerage expects revenue and EBITDA falling 2 per cent QoQ, but profit rising 4 per cent on a sequential basis. Shares of Mahindra & Mahindra surged more than a per cent to Rs 1,292.70 on Friday, with a market capitalization of more than Rs 1.6 lakh crore. Even after the correction from its 52-week high, the blue-chip stock is up 7 per cent in the last one month, while it has gained about 40 per cent in the last one year. Sharekhan expects M&M to report a revenue of Rs 21,881.7 crore, up 27.8 per cent YoY but flat on sequential basis. EBITDA margin may come in at 12.7 per cent, rising 131 bps YoY but may contract 32 bps QoQ. Profit is seen at Rs 1,291.9 crore, up 22.5 per cent YoY and 3.6 per cent QoQ. "M&M’s automotive division is expected to register 10 bps QoQ expansion in EBIT margin. With high base, leading tractor players M&M has reported 15.2 per cent decline in volumes, sequentially. We expect M&M to see a 30-bps QoQ contraction in EBIT margin," Sharekhan said. ICICI Securities sees revenue at Rs 22,177.2 crore, rising 30 per cent YoY but flat sequentially; with a EBITDA at Rs 3,065.5 crore, increasing 58 per cent YoY but just 9 per cent QoQ. PAT is seen at Rs 2,059.6 crore, up 59 per cent YoY and up 35 per cent QoQ. It has a 'buy' rating on the stock with a target price of Rs 1,386.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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