M&M slips ahead of Q3FY19 results

Shares slipped 2% even as PAT, EBITDA, and revenue numbers are expected to rise against Q2FY19 numbers.

Feb 08, 2019 01:02 IST India Infoline News Service

Mahindra XUV500
Shares of Mahindra and Mahindra Ltd were trading in the red on Friday afternoon. Shares dropped to Rs684 on the BSE, a drop of ~2% from the previous closing of Rs705 despite postive expectations for the company's Q3 numbers. Revenue, PAT, and EBITDA numbers for the auto major are expected to go up this quarter.  

The expectations are as follows:
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. Read more.

Mahindra & Mahindra Ltd is currently trading at Rs687.55 down by Rs14 or 2% from its previous closing of Rs701.55 on the BSE.

The scrip opened at Rs702 and has touched a high and low of Rs705 and Rs684 respectively. So far 36,97,048 (NSE+BSE) shares were traded on the counter. 

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