Mahindra & Mahindra (Q4 FY13)

India Infoline News Service | Mumbai |

Including MVML, OPM was higher by 228bps yoy driven by strength in EBIT margins of both segments; EBIT margins for automotive segment improved 171bps yoy and that of tractor segment rose 25bps yoy

CMP Rs1,004, Target Rs1,135, Upside 13.0%

  • Revenues increase 11.7% yoy on back of a robust performance in the automotive segment; Revenues were better than our expectations on back of higher than estimated realizations
  • Including MVML, OPM was higher by 228bps yoy driven by strength in EBIT margins of both segments; EBIT margins for automotive segment improved 171bps yoy and that of tractor segment rose 25bps yoy
  • PAT at Rs8.9bn was higher than ours and street expectations; was boosted by extraordinary income of Rs906mn
  • Tractor segment improvement will be the key for growth in FY14
  • We maintain BUY with a revised 9-month price target of Rs1,135
Result table
(Rs m) Q4 FY13 Q4 FY12 % yoy Q3 FY13 % qoq
Net sales 104,865 93,872 11.7 107,743 (2.7)
Material costs (78,465) (70,894) 10.7 (81,791) (4.1)
Personnel costs (4,424) (4,294) 3.0 (4,982) (11.2)
Other overheads (9,280) (8,990) 3.2 (8,858) 4.8
Operating profit 12,697 9,694 31.0 12,113 4.8
OPM (%) 12.1 10.3 178 bps 11.2 87 bps
Depreciation (1,986) (1,997) (0.6) (1,790) 11.0
Interest (511) (709) (28.0) (466) 9.7
Other income 922 956 (3.6) 742 24.2
Extraordinary items 906 1,083 (16.3) - -
PBT 12,028 9,026 33.3 10,599 13.5
Tax (3,136) (281) 1,016.0 (2,238) 40.2
Effective tax rate (%) 26.1 3.1
21.1
PAT 8,892 8,745 1.7 8,362 6.3
PAT margin (%) 8.5 9.3 (84) bps 7.8 72 bps
Ann. EPS (Rs) 60.3 59.5   1.3 56.7   6.3

Segmental performance
Revenue (Rs mn) Q4 FY13 Q4 FY12 % yoy Q3 FY13 % qoq
Automotive 76,164 66,137 15.2 73,605 3.5
Farm equipments 28,540 27,611 3.4 34,040 (16.2)
Others 262 196 33.8 144 81.6
Total 104,965 93,944 11.7 107,789 (2.6)






EBIT (Rs mn) Q4 FY13 Q4 FY12 % yoy Q3 FY13 % qoq
Automotive 7,467 5,759 29.7 6,254 19.4
Farm equipments 4,559 4,342 5.0 5,274 (13.6)
Others 87 31 175.5 12 603.3
Total 12,113 10,132 19.6 11,540 5.0






EBIT Margin (%) Q4 FY13 Q4 FY12 bps yoy Q3 FY13 bps qoq
Automotive 9.8 8.7 110 8.5 131
Farm equipments 16.0 15.7 25 15.5 48
Others 33.1 16.1 1,702 8.5 2,454
Total 11.5 10.8 75 10.7 83
Source: Company, India Infoline Research

M&M Standalone + MVML quarterly performance
(Rs m) Q4 FY13 Q4 FY12 % yoy Q2 FY13 % qoq
Net sales 99,830 91,188 9.5 102,426 (2.5)
Material costs (71,024) (65,855) 7.8 (73,747) (3.7)
Personnel costs (4,777) (4,550) 5.0 (5,320) (10.2)
Other overheads
BSE 1,431.70 19.15 (1.36%)
NSE 1,431.60 19.10 (1.35%)

***Note: This is a NSE Chart

 

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