M&M Q4 Results Preview: SUV maker likely to clock 19% jump in profit; margin likely to remain steady at 12.3%
In its Q4 results slated to be announced tomorrow, Mumbai-based automobile manufacturer Mahindra and Mahindra is estimated to report a 41 per cent on-year increase in EBITDA on-year.
Mumbai-based automobile manufacturer Mahindra and Mahindra is slated to report its January-March quarter earnings on May 16 (Thursday). Zee Business Research desk estimates the company’s standalone revenue for Q4FY24 to increase 6.3 per cent year-on-year (YoY) to Rs 23,995 crore as against Rs 22,571 crore reported in the same quarter last year.
EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortisation- a profitability metric is seen to log a 5.2 per cent on-year increase and come in at Rs 2,943 crore versus Rs 2,797 crore in the same period a year-ago. Also, the margins are estimated to remain steady at 12.3 per cent amid weak product mix and operating performance at the company.
Base Revenue & EBITDA may change due to the change in accounting policies, noted the desk. Besides in the base quarter i.e. Q4FY23, the company reported exceptional expenses to the tune of Rs 512 crore.
Furthermore, the standalone PAT is estimated to surge 19.4 per cent on-year from Rs 1549 crore reported in the same quarter last fiscal to Rs 1,850 crore in Q4FY24. Net profit at the auto major is likely to see an impact due to increase in tax rate from 9.5 per cent to 21.7 per cent.
Amid the execution of the order book, the auto segment is likely to register 13 per cent on-year growth in volume, while tractor volume is seen to log 20 per cent degrowth.
The realizations at the auto company is also expected to increase 1.5 per cent to Rs 8.21 lakh per unit.
Key monitorables
Investors will track the company’s update on the demand outlook for tractors.
M&M share price performance
Shares of the company marked a record all-time high of Rs 2314.45 per share on the BSE in intraday trade today. Last at the time of writing this copy, shares traded higher by 1.52 per cent at Rs 2,304.95.
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