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Last Updated : Feb 10, 2017 01:03 PM IST | Source: Moneycontrol.com

M&M Q3 profit, revenue seen up over 3% on slow volume growth

Normal rainfall and healthy water levels in reservoirs led to strong growth in tractor segment. With an increase in share in high margin tractors, margin may hold up at around 12.5 percent, analysts feel.


Utility vehicle and tractor maker Mahindra & Mahindra is expected to report profit at Rs 850 crore in October-December quarter, a growth of 3.5 percent compared with Rs 820.5 crore in year-ago quarter.


Revenue during the quarter (which also includes Mahindra Vehicle Manufacturers business) may increase 3.2 percent to Rs 3.2 percent year-on-year to Rs 10,800 crore as sales volume growth slowed down due to demonetisation.


Overall sales volume growth was 2 percent at 1.97 lakh units, supported by tractor sales that grew by 22 percent to 76,486 units but impacted by auto sales that fell 7.6 percent to 1.2 lakh units on year-on-year basis.

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Normal rainfall and healthy water levels in reservoirs led to strong growth in tractor segment. With an increase in share in high margin tractors, margin may hold up at around 12.5 percent, analysts feel.

Operating profit is expected to fall 0.8 percent year-on-year to Rs 1,401 crore and margin may shrink 50 basis points to 13 percent in the quarter gone by. Higher raw material cost may put pressure on margin sequentially, analysts say.

First Published on Feb 9, 2017 03:25 pm
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