M&M Announces Quarterly Results (3QFY20); Net Profit Down 71.5%

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M&M Announces Quarterly Results (3QFY20); Net Profit Down 71.5%
Mon, 10 Feb

M&M has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

M&M Quarterly Financials

No. of Mths
Qtr. Ending
3
Dec-18*
3
Sep-19*
3
Dec-19*
QoQ ChangeYoY Change
Net SalesRs m130,704110,761123,45311.5%-5.5%
Other incomeRs m3,4098,2772,063-75.1%-39.5%
TurnoverRs m134,113119,038125,5155.4%-6.4%
ExpensesRs m115,53196,851106,95810.4%-7.4%
Gross profitRs m14,37213,91010,490-24.6%-27.0%
DepreciationRs m4,7355,3995,5372.6%16.9%
InterestRs m249302224-25.9%-10.0%
Profit before taxRs m12,79716,4866,791-58.8%-46.9%
TaxRs m2,0294,3603,725-14.6%83.6%
Profit after taxRs m10,76812,1263,066-74.7%-71.5%
Gross profit margin%11.012.68.5
Effective tax rate%15.926.454.9
Net profit margin%8.010.22.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 5.5% on a year-on-year (YoY) basis. The expenses were down by 7.4% YoY during the same period.
  • The company's operating profit declined by 27.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 8.5% in 3QFY20 as against 11.0% in 3QFY19.
  • Depreciation charges increased by 16.9% and finance costs declined by 10.0% YoY, respectively.
  • Other income declined by 39.5% YoY during the quarter.
  • Net profit for the quarter declined by 71.5% YoY. Net profit margins during the quarter declined from 8.0% in 3QFY19 to 2.4% in 3QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 11.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 10.4% QoQ during the same period.
  • The company's operating profit declined by 24.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 8.5% in 3QFY20 as against 12.6% in 2QFY19.
  • Net profit for the quarter declined by 74.7% QoQ, while net profit margins declined from 10.2% in 2QFY19 to 2.4% in 3QFY20.

To see how M&M has performed over the last eight quarters,please visit here.

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M&M Share Price Performance

Over the last one year,M&M share price has moved down from Rs 683.0 to Rs 541.2, registering a Loss of Rs 141.9 or around 20.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 17,789.5 (down 1.6%). Over the last one year it has moved down from 18,943.6 to 17,789.5, a gain of 1,154 points (down 6.1%).

Overall, the S&P BSE SENSEX is up 10.4% over the year.

Current Valuations

At the current price of Rs 541.2, the price to earnings (P/E) ratio of M&M stands at 14.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.7 times.

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