Mahindra & Mahindra Q1 Review - Muted Quarter: Systematix
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Systematix Research Report
Mahindra and Mahindra Ltd.'s Q1 FY22 Ebitda margin was 4%/10% below consensus/our estimates.
Raw material inflation and operating deleverage hurt Ebitda margins sequentially despite an improvement in the product mix.
Ebit margin was 20.3% (down 170 basis points QoQ) for the tractor segment while 1.7% (down 330 bps QoQ) for the automotive segment.
The management expects single-digit growth for the tractor industry and has built inventory for the upcoming festive season.
In the automotive segment, order booking remains strong but supply chain constraints have restricted wholesale volumes.
M&M took another impairment hit of Rs 785 million during Q1, taking the total write-offs to Rs 83 billion in the last two years.
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