M&M Q4 Review - Strong Order Backlog, Cost Reduction Are Key Positives: Dolat Capital
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Dolat Capital Report
Mahindra and Mahindra Ltd. revenue and Ebitda numbers were broadly in line estimates in Q4 FY21.
Ebitda (M&M and Mahindra Vehicle Manufacturers Ltd.) jumped by 60 % YoY to Rs 19.6 billion with expanded margin at 14.7% (up 107 basis points YoY).
Ebit margin for the automotive division expanded by 87 bps YoY to 5% and farm equipment segment 436 bps to 22%.
The management looks bit cautious for tractors as second wave of Covid-19 impacting the rural consumption.
Expect low single digit growth in FY22 and confident to outperform industry growth with aspiration to gain in market share.
Growth opportunity in farm machinery segment is high and expect double digit growth for next couple of years.
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