Revenue from operations may increase 16% year-on-year, according to an average estimate of four brokerages, while net profit is likely to be flat or seen declining up to 14% year-on-year.
M&M reported volume growth of 13% year-on-year in autos and 6% year-on-year in tractors, leading to an overall volume growth of 11% year-on-year during the quarter.
In the preceding March quarter, the company had a standalone net profit of Rs 2,038 crore, which is an increase of 32% year-on-year and revenues rose 11% year-on-year to Rs 25,109 crore. The consolidated revenues were Rs 35,452 crore and net profit Rs 3,125 crore.
ETMarkets.comHere’s what analysts expect from M&M’s Q1
Motilal Oswal
We expect a 40 bp year-on-year gain in EBITDA margin due to favorable mix. PBIT margin for Auto division is likely to expand by 130 bp year-on-year to 8.8%.Kotak Equities
We estimate a 14% year-on-year increase in revenues in 1QFY25 led by (1) 13% year-on-year growth in tractor segment revenues mainly due to 6% year-on-year increase volumes and (2) 15% year-on-year increase in automotive segment revenues driven by strong improvement in ASPs and 1% year-on-year increase in volumes (due to subsidiarization of LML).
We expect overall EBITDA margin to improve by 80 bps quarter-on-quarter led by a richer segmental mix (tractor segment volume mix stood at 39% in 1QFY25 versus 27% in 4QFY24), partly offset by (1) RM headwinds and (2) higher advertisement spends due to launch of XUV 3XO. We are building an automotive EBIT margin of 8.5% in 1QFY25 versus 8.8% in 4QFY24 on account of higher marketing spends due to new model launches. Also, we are building tractor segment EBIT margin to improve by 190 bps quarter-on-quarter to 17.7% due to operating leverage benefits and a richer product mix.
YES Securities
M&M’s overall volumes for 1QFY25 increased by 12.6% quarter-on-quarter (+17.5% year-on-year), whereas tractors volume increased by 69.5% quarter-on-quarter (+5.6% year-on-year). Tractor contribution in volumes at 36.5% in 1QFY25 (v/s 15% in 4QFY24) whereas UV contribution in volumes decreased to 55.5% in 1QFY25 (v/s 66.1% in 4QFY24).
We expect M&M’s revenues to grow 17.5% year-on-year (+12.6% quarter-on-quarter) at Rs 28,270 crore while we expect ASP of Rs 848.9k per unit (+6.3% year-on-year and -3% quarter-on-quarter). We expect EBITDA margins at 13.9% (+50bp year-on-year/+100bp quarter-on-quarter). Adjusted PAT to be flat year-on-year (+36.4% quarter-on-quarter) at Rs 2,780 crore.
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