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 1QFY01: net down 33% - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 31, 2000

    Mahindra & Mahindra 1QFY01: net down 33%

    Tractor and utility vehicles giant, Mahindra & Mahindra (M & M) has reported a net profit of Rs 343 m for the 1QFY01, a fall of 33% YoY. The company's net sales fell by 1.9% YoY for the 1QFY01 to Rs 8,485 m. As operating expenses grew by 2.3% YoY in the 1QFY01, the company's operating margins fell to 8.3% in 1QFY01.

    The company's interest costs fell 31% YoY in the 1QFY01, as it has reduced its foreign currency borrowings in FY2000. The net margins fell to 4% in the 1QFY01 from 5.9% in the 1QFY00.

    The company's sales were affected as both, utility vehicles and tractors faced tough conditions in the 1QFY01. In the tractor industry though the company's market share went up to 36% YoY in the 1QFY01 as compared to 29.4% in the 1QFY00, the volume growth was only 0.7% YoY to 19,792 tractors. This is because the tractor industry reported a drop in volumes by 17.7% YoY in the first quarter due to drought conditions.
    (Rs m) 1QFY00 1QFY01 Change
    Sales 8,646 8,485 -1.9%
    Other Income 237 357 50.8%
    Expenditure 7,609 7,783 2.3%
    Operating Profit (EBDIT) 1,037 702 -32.3%
    Operating Profit Margin (%) 12.0% 8.3%  
    Interest 395 272 -31.1%
    Depreciation 290 324 12.0%
    Profit before Tax 589 463 -21.5%
    Other Adjustments 81 -  
    Tax 158 120 -23.8%
    Profit after Tax/(Loss) 513 343 -33.1%
    Net profit margin (%) 5.9% 4.0%  
    No. of Shares (eoy) (m) 110.5 110.5  
    Diluted number of shares 110.5 110.5  
    Diluted Earnings per share* 18.6 12.4  
    *(annualised)      

    In the automotive segment, the sales tax rationalisation, higher competition and drought conditions in certain states affected the company's utility vehicle volumes. In the 1QFY01 M & M sold 13,624 utility units as compared to 15,581 vehicles in the 1QFY00, a fall of 12.6% YoY. As M & M's stronghold has been the rural markets the drought made matters worse for them. However, Telco's Sumo and Toyota Qualis have done well in the 1QFY01, as these products focus on both rural as well as urban markets.

    In the LCV segment the company has done well and sold 1,904 units in the 1QFY01 as compared to 1,464 units sold in the 1QFY00, a growth of 30% YoY.

    To counter the competition in the utility segment the company will be launching the "Bolero" a product which will cater to both urban and rural markets. In the tractor industry the company has launched its new generation 60 HP tractor, Arjun 605 DI. This product has been well accepted in the market.

    In FY2001 the company plans to focus on brand building and new product launches in both the above segments. As the monsoons are expected to be normal, M & M will see an improvement in demand in both its segments in the second half of the year.

    On a positive note the company's subsidiary Mahindra British Telecom (MBT) is expected to come out with an initial public offering (IPO). The offer would be upto 10% of the company's equity by way of fresh equity issue and secondary sale though dilution of stake of existing equity holders. MBT reported a net profit of Rs 206.6 m for the 1QFY01, a growth of 50% YoY.

    On the current price of Rs 206, M & M is trading at 8.6x FY2000 EPS of Rs 23.8.

     

     

    Equitymaster requests your view! Post a comment on "Mahindra & Mahindra 1QFY01: net down 33%". Click here!

      
     

    More Views on News

    Mahindra & Mahindra Ltd: Robust Performance amid Uncertainties! (Quarterly Results Update - Detailed)

    Jul 4, 2017

    The Growth in the Farm Segment offsets mediocre performance in the auto business.

    Mahindra & Mahindra Ltd: Tractor Demand offsets the Notebandi hit Auto Segment! (Quarterly Results Update - Detailed)

    Mar 20, 2017

    Mahindra & Mahindra has announced its financial results for the third quarter of the financial year 2016-17 (2QFY17).

    Mahindra & Mahindra Ltd: Tractors Demand Upbeat, Gaining Market Share in Auto (Quarterly Results Update - Detailed)

    Nov 22, 2016

    Mahindra & Mahindra has announced its financial results for the second quarter of the financial year 2016-17 (2QFY17). During the quarter, revenues grew by 15.6% YoY and adjusted net profits grew by 18.5%.

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    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 21, 2017 (Close)

    TRACK M&M

    M&M 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE M&M WITH

    MARKET STATS