X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Mahindra & Mahindra Ltd: Tractor Demand offsets the Notebandi hit Auto Segment! - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Mar 20, 2017 - Mahindra & Mahindra Ltd: Tractor Demand offsets the Notebandi hit Auto Segment!

Mahindra & Mahindra Ltd: Tractor Demand offsets the Notebandi hit Auto Segment!
Mar 20, 2017

Mahindra & Mahindra has announced its financial results for the third quarter of the financial year 2016-17 (2QFY17). During the quarter, revenues grew by 1.2% YoY and adjusted net profits declined by 7.1%.

Performance summary
  • For 3QFY17, net sales grew by 1.2% YoY. The auto business was badly hit by the demonetisation and saw a de-growth of 8% YoY, this was offset by the strong growth in the Farm segment which grew by 20%.
  • Over all volumes for the quarter grew at 1.5% YoY and realizations were down by 0.7%.
  • Operating profits for the quarters were almost flat and declined by 0.1% YoY with margins contracting by 17.8bps to 13.7%. The rise in the raw material cost was offset by the lower other expenses for the quarter.
  • Adjusted net profits were down by 7.1% YoY with margins contracting by 66bps to 7.5%. The profitability was impacted by both the subdued operating performance and an increase in the tax which was up 4.5% YoY.

    Financial performance: M&M and MVML** combined
    (Rs m) 3QFY16 3QFY17 Change
    No. of Vehicles sold 193,652 197,355 1.90%
    Net sales 104,644 105,868 1.20%
    Expenditure 90,130 91,374 1.40%
    Operating profit (EBDITA) 14,514 14,495 -0.10%
    EBDITA margin (%) 13.9% 13.7% -17.87
    Other income 911 921 1.10%
    Depreciation 3,211 3,753 16.90%
    Interest 636 591 -7.00%
    Profit before tax 11,579 11,071 -4.40%
    Exceptional item 0 165
    Tax 3,086 3,226 4.50%
    Profit after tax / (loss) 8,493 8,011 -5.70%
    Adjusted Profit 8,493 7,894 -7.10%
    Net profit margin (%) 8.1% 7.5% -66.05
    No. of shares (m) 621.1
    Diluted earnings per share (Rs)* 54.6
    Price to earnings ratio (x)* 24.26
    (*Trailing twelve-month earnings)
    (**Mahindra Vehicle Manufacturers Ltd)
To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
  2. Neither Equitymaster, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Except for Mahindra and Mahindra Limited, Equitymaster's Associate(s) has/have no financial interest in any other Subject Company forming a part of this report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  5. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

M&M SHARE PRICE


Aug 23, 2017 (Close)

TRACK M&M

M&M - HMT LTD. COMPARISON

Compare Company With Charts

COMPARE M&M WITH

MARKET STATS