M-;M (incl. MVML) Q3FY22 Preview: Revenue seen at Rs150,250 million, PAT at Rs15,033 million

8 Feb 2022 , 03:06 PM

Result date: 10th February, 2022
Recommendation: Add
Target price: Rs1,065
(Source: IIFL Research)

M&M (incl. MVML) is all set to post 12.9% QoQ growth in revenue with a sharp 19% QoQ rise in auto volumes, and a modest 5% rise in tractors. Company’s PAT is estimated at Rs15,033 million, with a decline of 10.9% QoQ and 13.8% YoY respectively. Its Auto EBIT margin is seen at 5.0% and the Tractor EBIT margin is estimated at 19.0%.

Important management insights to watch out for:
* Price hikes
* Demand trends

	December 2021 estimates	YoY change	QoQ change
Auto volumes	121,167	(0.9%)	19.2%
Tractor volumes	92,967	(8.6%)	4.6%
Revenue (Rs. mn)	150,250	6.9%	12.9%
EBITDA (Rs. mn)	20,161	(15.5%)	21.5%
EBITDA margin	13.4%	(355) bps	94 bps
PAT (Rs. mn)	15,033	(13.8%)	(10.9%)

Source: Company, IIFL Research