M&M Q2 net seen down 3% at Rs 959.4 cr: ICICIdirect

ICICIdirect has come out with its second quarter (July-September) earnings estimates for the automobile sector. The brokerage house expects Mahindra and Mahindra to report a 8.8 percent growth quarter-on-quarter (degrowth of 3 percent year-on-year) in net profit at Rs 959.4 crore.

Revenues are expected to decrease by 4.4 percent Q-o-Q (up 9.8 percent Y-o-Y) to Rs 9805.6 crore, according to ICICIdirect.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 0.4 percent Q-o-Q (up 10.4 percent Y-o-Y) to Rs 1264.4 crore.

M&M's automotive segment has witnessed a 2 percent Y-o-Y decline but 3 percent Q-o-Q growth in volumes to 115,650 units. The tractor segment which has outperformed the indsutry saw flat volumes on a Y-o-Y in the seasonally weak quarter (20 percent Q-o-Q de-growth) to 61,150 units. Due to higher share of FES segment, EBITDA margins are likely to improve 50 bps Q-o-Q to 12.9 percent. PAT is likely to be boosted by higher other income on subsidiaries dividend.Topline/PAT is expected at Rs 9800 crore/Rs 960 crore respectively.

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