Mahindra and Mahindra Limited (M&M + MVML) Consensus expectations for Q3FY19E:

  • Revenue: Rs13,089cr (up 14% yoy, 2% qoq). Volume growth in Q3FY19 was mixed; M&HCVs declined 22% yoy (down 30% qoq), PV growth was subdued at 9% yoy (down 5% qoq), while tractor growth resumed to 12% yoy (16% qoq) after a 4% yoy slump in Q2FY19. The recent launches (Marazzo and Alturas G4) are yet to result in a significant boost to M&M’s volumes.
  • EBITDA: Rs1,918cr (up 13% yoy, 4% qoq). The company continues to face higher commodity costs, price discounting (in CV and PV portfolios) to push sales, and demand weakness. However, a steady show in tractors (which commands better margins) may keep its EBITDA margin unchanged.
  • EBITDA margin: 14.7% (contraction of 8bps yoy, expansion of 19bps qoq). We expect weakness in automotive segment margins due to weak volumes, year-end discounting, and launch related expenses of Marazzo and Alturas G4.
  • PAT: Rs1,056cr (up 15% yoy, down 36% qoq).

MVML, Mahindra Vehicle Manufacturers Limited is a 100% subsidiary of M&M that manufactures utility vehicles, light transport vehicles, and commercial vehicles.

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