Mahindra & Mahindra (Q3 FY13)

India Infoline News Service | Mumbai |

Revenues increase 28.5% yoy on back of a robust performance in the automotive segment; Revenues were lower than our expectations on back of lower than estimated realizations

CMP Rs882, Target 1,025, Upside 16.2% 
  • Revenues increase 28.5% yoy on back of a robust performance in the automotive segment; Revenues were lower than our expectations on back of lower than estimated realizations

  • Including MVML, OPM was lower by 32bps yoy driven by slight weakness in EBIT margins of the tractor segment; EBIT margins for automotive segment improved 107bps yoy due to benefits of operating leverage 

  • PAT at Rs8.4bn was lower than ours and street expectations in spite of lower than anticipated tax rate

  • Tractor segment sluggishness is expected to remain in Q4 FY13

  • We maintain BUY with a revised 9-month price target of Rs1,025

Result table
(Rs m) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Net sales 107,743 83,829 28.5 98,130 9.8
Material costs (81,791) (62,354) 31.2 (73,543) 11.2
Personnel costs (4,982) (4,473) 11.4 (4,743) 5.0
Other overheads (8,858) (6,772) 30.8 (8,654) 2.4
Operating profit 12,113 10,230 18.4 11,189 8.3
OPM (%) 11.2 12.2 (96) bps 11.4 (16) bps
Depreciation (1,790) (1,408) 27.1 (1,784) 0.3
Interest (466) (348) 33.9 (475) (1.9)
Other income 742 667 11.3 3,229 (77.0)
PBT 10,599 9,141 16.0 12,160 (12.8)
Tax (2,238) (2,519) (11.2) (3,142) (28.8)
Effective tax rate (%) 21.1 27.6   25.8  
PAT 8,362 6,622 26.3 9,018 (7.3)
PAT margin (%) 7.8 7.9 (14) bps 9.2 (143) bps
Ann. EPS (Rs) 56.7 45.0 25.8 61.1 (7.3)

Segmental performance
Revenue (Rs mn) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Automotive 73,605 51,152 43.9 71,498 2.9
Farm equipments 34,040 32,486 4.8 26,534 28.3
Others 144 248 (42.0) 151 (4.6)
Total 107,789 83,886 28.5 98,184 9.8
           
EBIT (Rs mn) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Automotive 6,254 4,179 49.6 6,718 (6.9)
Farm equipments 5,274 5,084 3.7 3,921 34.5
Others 12 36 (65.9) 34 (63.4)
Total 11,540 9,299 24.1 10,672 8.1
           
EBIT Margin (%) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Automotive 8.5 8.2 33 9.4 (90)
Farm equipments 15.5 15.7 (16) 14.8 72
Others 8.5 14.5 (600) 22.3 (1,371)
Total 10.7
BSE 1,419.00 30.05 (2.16%)
NSE 1,418.25 30.10 (2.17%)

***Note: This is a NSE Chart

 

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