Mahindra and Mahindra Q1 Results Preview: Decent rise in revenue, EBITDA margin likely; here's what brokerages expect

livemint.com:

Phillip Capital expects M&M's revenue to grow 24 per cent year-on-year (YoY) for Q1FY24 led by an 11 per cent increase in volumes and a 12 per cent increase in realisations on the back of improved product mix and price hikes. Profit after tax (PAT) for the quarter can grow 35 per cent YoY.

EBITDA margin is likely to improve 95bps YoY on improved product mix, higher operating leverage and lower raw material costs. The estimates of Motilal Oswal Financial Services suggest a 10.7 per cent YoY growth in M&M's total volume for the quarter.

EBITDA margin may rise to 12.9 per cent from 11.8 per cent YoY due to favourable mix and softening raw material prices. Adjusted PAT may rise by 34.5 per cent YoY.

Motilal expects strong volume growth in autos (due to improving supply chain) and stable tractor volumes YoY (aided by a healthy reservoir level and government schemes and subsidies). Kotak Institutional Equities estimates a 23 per cent YoY increase in revenues in Q1FY24 led by (1) a 33% YoY increase in automotive segment revenues, driven by a 21 per cent YoY increase in volumes and a 9 per cent YoY increase in ASPs (average selling prices) due to price increases taken by the company and a richer product mix, and (2) 8 per cent YoY increase in the tractor segment revenues mainly due to an 11 per cent QoQ increase in ASPs due to price increases, higher mix of more than 40 HP tractors as well as farm implements.

Kotak expects overall EBITDA margin to increase by 60 bps QoQ led by (1) a richer segmental mix (tractor segment volume mix stood at 38 per cent in Q1FY24 versus 32 per cent in Q4FY23) and (2) raw material tailwinds in the tractor segment. "We are building an automotive EBIT margin of 7.5 per cent in Q1FY24 versus 7.3 per