The sturdy earnings within the automotive phase will assist offset the autumn in gross sales within the tractor phase within the seasonally weak quarter.
Income for the quarter is seen rising by greater than 54% YoY to Rs 20,525 crore, based on
ET Now ballot.
“Progress within the auto phase (up 17% QoQ) with higher combine would compensate for the drop in tractor phase in a seasonally weak quarter,” brokerage
mentioned in its report.
In September, M&M reported highest-ever month-to-month gross sales of 64,486 models within the auto phase, on account of continued traction within the sports activities utility phase.
Whereas gross sales is prone to see sturdy development, operational efficiency can be marred by increased enter prices and weak spot within the tractor phase.
“We estimate total EBITDA margin to say no by 70 bps QoQ, led by inferior segmental combine and uncooked materials headwinds,” Kotak Institutional Equities mentioned in a report.
Automotive margin is seen bettering by 30 bps to six% in Q2 primarily on account of working leverage advantages, Kotak Equities mentioned. Greater uncooked materials prices and inferior product combine will restrain the enlargement in margin.
Internet revenue is seen rising 31% on-year to Rs 1,875 crore on the again of upper gross sales and a better different revenue, which is pushed by a dividend payout by
.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)
