M&M Q3 results today: Will the ‘Scorpio’ SUV maker surprise D-Street? What to expect?
earnings for the December quarter later today, and analysts widely expect the company to report strong numbers on the back of healthy demand in the domestic market.
Core Earnings
Net profit for the quarter is seen rising 21.2% year-on-year (YoY) to Rs 2,428.30 crore, according to the average of estimates given by seven brokerage firms.
Revenue is likely to increase 16.5% YoY to Rs 25,216 crore, led by strong growth in volumes in the automotive segment, which will offset the weakness in the tractor segment.
Operating profit, calculated as earnings before interest, taxes, depreciation and amortization or EBITDA, is likely to grow 14% on year to Rs 3,213 crore.
Sequentially, the revenue is seen rising a moderate 4% and operating profit by nearly 5%, but the net profit may decline by 30%.
Volumes
M&M saw strong growth in automotive sales volume in the last quarter, amid robust demand in the festival season and continued traction in the sport utility vehicle segment.
Sales volume in the automotive segment rose 20% YoY to 211,443 units, according to the data shared by the company to the stock exchanges.
In December alone, M&M sold a total of 35,171 SUVs, witnessing a healthy growth of 24% over last year. However, the tractor segment saw a drop in volumes in the quarter to the tune of 4% to 101,672 units.
Key Monitorables
Analysts will look for comments on the outlook for tractor as well as the automotive segment, both for the domestic and export markets.
Planned launches for the year, commentary on part
