BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Mahindra and Mahindra Ltd. demonstrated a stable performance in Q1. Ebitda grew by 20.3% QoQ to Rs 23.41 billion with 57 basis points margin expansion at 11.9%.
Ebit margin for automotive division increased by 13 bps QoQ to 5.6 % and for farm equipment segment expanded by 39 bps QoQ to 15.7 %.
In automotive segment, demand remains strong led by new launches in the sports utility vehicle segment. M&M has a healthy order book (140,000 vehicles, ex Scorpio N), however supply side challenges persist.
Newly launched XUV 700 is receiving encouraging responses (up 79,000 order backlogs, eight-nine order back-log). New Scorpio N, also clocked a record booking for one lakh units on the first day itself.
We expect auto margin to improve gradually from H2 FY23, on account of scale, model mix and cost savings. However, unfavorable dollar movement and price protection for the first 50,000 for XUV700 and 25,000 for the new Scorpio would be key constraints for margin expansion in FY23.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
