M&M Q2 Results Review - Inline; Margin Stable Despite A Weaker Mix: Motilal Oswal

A strong order backlog in SUVs will continue to boost its performance, supported by capacity expansion, raw material cost savings.

<div class="paragraphs"><p>A M&amp;M jeep. (Photo: Saiyam Arora /Source: Unsplash)</p></div>
A M&M jeep. (Photo: Saiyam Arora /Source: Unsplash)

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Motilal Oswal Report

Mahindara and Mahindra Ltd.'s Q2 FY23 earnings were in line, with a stable margin, despite a weaker mix. While the auto business is firmly on the growth path, led by a refreshed product portfolio, its tractor outlook is muted for H2 FY23.

A strong order backlog in SUVs will continue to boost its performance, supported by capacity expansion and raw material cost savings.

Standalone revenue/Ebitda/adjusted profit after tax grew 57%/50%/39% YoY to Rs 208.4 billion/Rs 25 billion/Rs 23.4 billion in Q2 FY23. The same grew 61%/47%/ 45% YoY in H1 FY23.

M&M's volumes grew 43% YoY. Net realisations grew 9% YoY and 6% QoQ to ~Rs 762,700/unit (inline), led by a growth of ~7%/5% YoY in tractor/ auto realisations.

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Motilal Oswal M&M Q2 FY23 Results Review.pdf
M&M Q2 Results: Profit Beats Estimates On Higher Sales


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