M&M Q1 profit seen up 1%; volume and realisations may drive revenue growth

Utility vehicle and tractor maker Mahindra and Mahindra (M&M) is expected to see steady growth in April-June quarter on good tractor sales volume growth.

Profit during the quarter is seen rising 1 percent year-on-year to Rs 971 crore and revenue may increase 6 percent to Rs 11,168 crore, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is likely to increase 6 percent to Rs 1,573 crore but margin may contract 20 basis points to 14 percent compared with same quarter last year due to higher material cost.

Revenue growth may be led by volume growth of 3 percent while realisations may improve by 3 percent due to better product mix.