Mahindra & Mahindra shares are trading nearly 3% higher on Friday after the automaker beat Street estimates on June-quarter revenue and standalone profit, even as margins missed expectations.
The stock is trading at Rs 3,380.9 apiece on NSE, gaining over 91.6 points from its previous close at Rs 3,283.7. Nifty 50, meanwhile, remained muted with just 0.13% gains.
Revenue, Profit Top Estimates
The company's standalone net profit rose 6.8% year-on-year to Rs 3,685 crore in the June quarter, compared with Rs 3,450 crore in the year-ago period. The figure was higher than the Bloomberg consensus estimate of Rs 3,569 crore.
Revenue from operations increased 23% year-on-year to Rs 41,920 crore, up from Rs 34,083 crore a year earlier. The topline also marginally exceeded the Street estimate of Rs 41,845 crore.
Also Read: M&M's Weak Spot May Be Temporary; Analysts See Bigger Story Unfolding In H2
Operating Performance Misses Street View
Despite the earnings beat, the company's operating performance was weaker than expected.
Ebitda rose 7.9% year-on-year to Rs 5,111 crore, missing the Bloomberg consensus estimate of Rs 5,353 crore. Ebitda margin narrowed to 12.2% from 13.9% in the corresponding quarter last year and came in below the estimated 12.8%, indicating pressure on profitability.
On a consolidated basis, revenue from operations climbed to Rs 57,533.4 crore in the June quarter from Rs 45,435.8 crore a year ago. Consolidated profit after tax increased to Rs 5,997.56 crore, compared with Rs 4,376.5 crore in the year-ago period.
Also Read: M&M Q1 Result: Net Profit, Revenue Beat Estimates — Key Numbers Inside
Shares Gaining Over a Month
Shares of Mahindra & Mahindra have been gaining for a month now, rising almost 10% during the period, including today's surge. In the past week itself, the stock gained 6.8%.
In the past 52 weeks, the stock traded between Rs 2896 and Rs 3839 per share, and its market cap stood at Rs 4,20,026.73 crore as at the end of the previous session.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
