Q4FY22 Preview: Mahindra and Mahindra: Revenues seen at Rs169,072 million, PAT at Rs10,955 million

27 May 2022 , 11:20 AM

Result date: 28^th May, 2022
Recommendation: Buy
Target price: Rs1,035
 
Mahindra and Mahindra will witness healthy growth in volumes of automobile sales, even as tractor sales could witness sharp fall owing to the seasonality factor. Price hikes though could aid revenue in the March 2022 quarter. Consequently, revenue could grow ~27% over the year-ago quarter and ~11% sequentially.

EBITDA margin is estimated at 11.9%, down 281 basis points over the year-ago quarter and 4 basis points sequentially. Lower share of tractors and high input cost inflation are key margin headwinds for the company.

The company’s Profit After Tax (PAT) could grow ~9% over the year-ago quarter and fall 19% sequentially.

Important management insights to watch out for:

• Outlook on demand across all segments and market
• Trends in input cost inflation, pricing action planned and margin levers

 

Rs Million (incl. MVML)	March 2022 estimates	YoY change	QoQ change
Revenue	169,072	26.8%	10.9%
EBITDA	20,096	2.5%	11.3%
Profit After Tax	10,955	9.3%	(19.0)%

Source: IIFL Research