M&M Q4 Review - Sharp Turnaround In Global Auto, Farm Equipment Subsidiaries: Prabhudas Lilladher

A farmer drives a Mahindra 475 DI tractor, manufactured by Mahindra & Mahindra Ltd., through an areca nut farm in the village of Kuragunda in Karnataka, India. (Photographer: Prashanth Vishwanathan/Bloomberg).

M&M Q4 Review - Sharp Turnaround In Global Auto, Farm Equipment Subsidiaries: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Mahindra and Mahindra Ltd. and Mahindra Vehicle Manufacturers Ltd.'s Q4 FY21 result were operationally in-line with Ebitda at Rs 19.6 billion (our estimate Rs 20.3 billion) and margins at 14.7% (our estimate 15%, up 110 basis point YoY).

However, led by lower other income at Rs 1.1 billion (our estimate Rs 5.2 billion, down 63% YoY/ 79% QoQ), adjusted profit after tax missed estimates at Rs 10 billion (our estimate Rs 13.5 billion, down 42.5% QoQ).

Ebit margins for farm equipment sector/automotive grew 440bp/90bp YoY at 22%/ 5% led by operating leverage.

However, supply challenges should continue to impact auto segment volumes till H1 FY22 atleast.

Click on the attachment to read the full report:

Prabhudas Lilladher M&M Q4FY21 Result Update.pdf

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