M&M Q1 PAT seen up 16% at Rs 842 cr: Prabhudas Lilladher

Prabhudas Lilladher has come out with its first quarter (April-June) earnings estimates for the automobile sector. The brokerage house expects Mahindra and Mahindra (M&M) to report a 5.4 percent growth quarter-on-quarter (rise of 16.1 percent year-on-year) in net profit at Rs 842.1 crore.

Revenues are expected to increase by 0.3 percent Q-o-Q (up 12.3 percent Y-o-Y) to Rs 10,523.2 crore, according to Prabhudas Lilladher.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 2.9 percent Q-o-Q (up 17.8 percent Y-o-Y) to Rs 1,307.4 crore.

EBITDA margin or operating profit margin is likely to be at 12.4 percent in June quarter as against 12.1 percent in March quarter and 11.8 percent in a year ago period.

Prabhudas Lilladher report on Mahindra & Mahindra

Led by strong volume growth of 25.2 percent Y-o-Y in tractor volumes, we expect EBITDA margins to improve by 60bps Y-o-Y. Tractor volumes accounted for 38.3 percent as against 32.7 percent of overall volumes in Q1FY13. At the same time, raw material cost during the quarter was stable.

Standalone margins to improve by 60bps. Including MVML, PAT is to grow at 19.1 percent Y-o-Y to Rs 9.3 billion led by 70bps improvement in EBITDA margins.