HDFC Securities: M&M Logs A Tepid Quarter, Sustained Focus On Capital Allocation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Mahindra & Mahindra Ltd. reported a weak Q1 (Profit after tax of Rs 389 million, down 96% YoY), impacted by the automotive segment.While tractor outlook remains upbeat due to encouraging monsoon trends, the demand for SUVs continues to be impacted by intense competition (multiple new competitor launches are lined up).Automotive/tractor volumes were down 77/24% YoY. Revenue declined 56% YoY to Rs 55.8 billion. Ebitda margin at 10.3% contracted 375/340 basis points YoY/QoQ owing to negative operating leverage.Profitability at the tractor division improved with Ebit margin at 20.4% (up 280 basis points QoQ). Automotive segment reported an Ebit loss of Rs 5.8 billion.M&M continues to focus on efficient capital allocation (targeting return on equities of 18% across business lines) and is seeking partners for SsangYong Motor Company and electric vehicles segment..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: M&M Logs A Tepid Quarter, Sustained Focus On Capital Allocation

HDFC Securities: M&M Logs A Tepid Quarter, Sustained Focus On Capital Allocation

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