M&M Q3 Results Preview: Automaker expected to report positive set of numbers in December quarter

M&M Q3 Results Preview: Mahindra and Mahindra Ltd (M&M) is expected to report a largely positive set of earnings numbers as the automaker is set to  announce its December quarter results on Wednesday (February 13, 2024). 

Zee Business research estimates the company to report a 65 per cent rise in its standalone profit after tax to Rs 2520 crore in the December quarter compared to Rs 1528 crore Year-on-Year (YoY).

Analysts estimate Mahindra and Mahindra's revenue from operations to witness growth of 17.3 per cent to Rs 25400 crore in the  quarter under review from Rs 21654 crore in the year-ago period.

Street predicts the automaker's EBITDA to rise to Rs 3230 crore in Q3 from Rs 2814 crore YoY, which will be an upside of 14.8 per cent.

The company's margin, meanwhile, is expected to be slightly lower at 12.70 per cent in the quarter under review compared to the 13 per cent the company reported in the same quarter last fiscal. 

In the September quarter, the company suffered an exceptional loss of Rs 629 crore. 

Since Mahindra and Mahindra is changing its accounting policy, its base revenue and EBITDA in the December quarter may change.

What more can we expect from Mahindra and Mahindra's Q3 results?
 

The company's total volume is estimated to increase by 11.6 per cent to 3.13 lakh in the quarter under review.

The volume of the auto segment is expected to increase due to the end of supply chain problems and the execution of the order book.

Its tractor volumes are estimated to fall due to high base and uneven rains.

Its realizations is expected to increase by 6 per cent to Rs 8.14 lakh/unit.

Margin improvement is possible due to better operating leverage.

Investors are advised to keep an eye on the company's tractor demand outlook.

Mahindra and Mahindra share price

The stock of M&M closed the tarding session on Tuesday lower by 0.85 per cent, or rs 14.05, at Rs 1645.90.