Mahindra & Mahindra (Q1 FY15)

India Infoline News Service | Mumbai |

Automotive segment revenue was flat yoy in spite of a decline in volumes owing to higher realizations which was due to better product mix and price hikes taken during the year.

CMP Rs1,229, Target Rs1,340, Upside 9.0% 
  • Including MVML and, M&M reported flat revenues on yoy basis while sequential comparison is redundant

  • OPM was at 14.3% when compared with 13.8% in Q1 FY14, increase in margins was led by higher gross margins on back of improving product mix

  • AT at Rs8.9bn was in line with estimates and was higher by 4.3% yoy

  • Company has revised its guidance of tractor industry growth from 8-10% to 5% on back of poor monsoons and expects the passenger vehicle industry to grow by 4-6% with faster growth for UVs.

  • Assign Accumulate rating with a 9-month TP of Rs1,340

Result table (M&M + MVML excluding MTBL)
(Rs m)
Q1 FY15
Q1 FY14
% yoy
Q4 FY14
% qoq
Net sales
99,073
98,203
0.9
102,144
(3.0)
Material costs
(67,938)
(69,171)
(1.8)
(71,089)
(4.4)
Personnel costs
(6,239)
(5,520)
13.0
(6,539)
(4.6)
Other overheads
(10,704)
(9,986)
7.2
(13,912)
(23.1)
Operating profit
14,192
13,526
4.9
10,604
33.8
OPM (%)
14.3
13.8
55 bps
10.4
394 bps
Depreciation
(2,802)
(2,286)
22.6
(3,200)
(12.4)
Interest
(816)
(831)
(1.8)
(1,078)
(24.2)
Other income
1,447
976
48.3
1,073
34.9
Extra ordinary items
-
-
-
528
-
PBT
12,021
11,386
5.6
7,927
51.6
Tax
(3,057)
(2,788)
9.7
1,750
(274.7)
Effective tax rate (%)
25.4
24.5
(22.1)
Adjusted PAT
8,964
8,598
4.3
9,677
(7.4)
Adj. PAT margin (%)
9.0
8.8
29 bps
9.5
(43) bps
Ann. EPS (Rs)
60.7
58.3
4.3
65.6
(7.4)
Source: Company, India Infoline Research

Revenue flat yoy for both automotive and tractor segments

Sequential comparison for M&M is redundant as during Q4 FY14, M&M merged its subsidiary Mahindra Trucks & Buses Ltd and the full impact of FY14 was accounted in Q4 FY14. On a yoy basis, M&M rep

BSE 1,428.35 15.80 (1.12%)
NSE 1,430.80 18.30 (1.30%)

***Note: This is a NSE Chart

 

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