M&M Q1 profit seen up 37% at Rs 907 cr: Motilal Oswal

Sales are expected to increase by 4.1 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 10578.9 crore, according to Motilal Oswal

July 14, 2016 / 14:48 IST

26 Aug, 2025 12:21

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Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the auto sector. The brokerage house expects Mahindra & Mahindra to report a 36.7 percent growth quarter-on-quarter (growth of 9.2 percent year-on-year) in net profit at Rs 907.2 crore.

Sales are expected to increase by 4.1 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 10578.9 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 20.7 percent Q-o-Q (up 13.3 percent Y-o-Y) to Rs 1532.4 crore.

Motilal Oswal's report on Mahindra & Mahindra
Overall volume grew 12 percent Y-o-Y (+5 percent Q-o-Q), driven by new launches in UVs (+12 percent Y-o-Y, -15 percent Q-o-Q) and recovery in tractors on low base (+20 percent Y-o-Y, +9 percent Q-o-Q). MM (including MVML)’s realization would be flat Y-o-Y (-1 percent Q-o-Q), as better product mix due to increase in share of tractors is offset by increase in lower ASP compact UVs. Revenue is likely to grow 12 percent Y-o-Y (+4 percent Q-o-Q) to Rs 106b.

EBITDA margin should expand 20bp Y-o-Y (+200bp Q-o-Q) to 14.5 percent. PAT is projected to grow 9 percent Y-o-Y (+36 percent Q-o-Q) to Rs 9b. We are lowering our consolidated EPS estimate for FY17 by 4 percent to factor in lower than estimated UV volume, but upgrade our FY18 estimate by 5 percent on faster than estimated recovery in key subsidiaries.