Moneycontrol
Oct 17, 2016 06:25 PM IST IST | Source: Moneycontrol.com

Mahindra & Mahindra Q2 PAT seen up 9.5% to Rs 950.2 cr: Centrum

Net Sales are expected to decrease by 3.3 percent Q-o-Q (up 15.5 percent Y-o-Y) to Rs 10681 crore, according to Centrum.


Centrum has come out with its second quarter (July-September) earnings estimates for the Automobiles sector. The brokerage house expects Mahindra & Mahindra to report net profit at Rs 950.2 crore, up 9.5 percent quarter-on-quarter.


Net Sales are expected to decrease by 3.3 percent Q-o-Q (up 15.5 percent Y-o-Y) to Rs 10681 crore, according to Centrum.


Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 9.7 percent Q-o-Q (up 13.4 percent Y-o-Y) to Rs 1163.9 crore.

Centrum's report on Mahindra & Mahindra

We expect the company to report total operating income of Rs10.7bn, posting 16% YoY growth (-3% QoQ). We expect a relatively weak operating performance with EBITDA margins at 10.9% (-20bps YoY/ -80bps QoQ) impacted by weak performance in the automotive segment.

We estimate adjusted PAT at Rs 9.5bn (+3% YoY/ +9% QoQ) on the back of higher other income. We continue to maintain Hold rating on the stock, with a TP of Rs1,430.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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