Utility vehicle and farm equipment maker Mahindra & Mahindra (M&M) is expected to report a 9.5 percent growth in second quarter consolidated profit at Rs 1,070.8 crore on yearly basis, according to analysts polled by CNBC-TV18.
Consolidated numbers included Mahindra Vehicle Manufacturers earnings.
Revenue may grow 17 percent year-on-year to Rs 10,277 crore, driven by volume growth of 18.6 percent.
Analysts expect a strong quarter due to healthy volume growth led by tractors. Total volumes grew by 18.6 percent YoY to 1.87 lakh from 1.58 lakh units.
Auto sales volumes increased 11.5 percent YoY to 1.26 lakh units, driven by launch of compact SUV models KUV 100 and TUV 300. Tractor volumes jumped 36 percent at 61,658 units, which picked up significantly in September due to good monsoon. The company earns 40 percent of profit from tractor business.
EBITDA (earnings before interest, tax, depreciation and amortisation) may increase 19.3 percent year-on-year to Rs 1,387 crore and margin may expand 30 basis points to 13.5 percent in Q2.
On standalone basis, profit in Q2 may increase 15 percent to Rs 1,062.8 crore and revenue is seen rising 11 percent to Rs 10,247 crore compared with year-ago period. EBITDA may grow 26 percent to Rs 1,293 crore and margin may expand 160 basis points to 12.6 percent.
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