M&M Q3 Results Review - Inline Quarter; Waiting Period Coming Down: Systematix

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. .Systematix Research Report.Mahindra and Mahindra Ltd.’s Q3 FY23 operating performance was in line with consensus and our estimates on the back of continued strong growth in auto as well as farm segment. Auto Ebit margin came in at 6.7% (up 320 basis points YoY) and tractor Ebit margin came in at 16.6% (down 80 bps YoY). New launches in the sports utility vehicle segment have been received well, and the order book of ~266,000 units is well diversified across XUV 700, Scorpio N, Thar and the recently launched electric XUV300/400 (XUV400 received 15,000 bookings in three days of commencement). The management has also highlighted that with deliveries improving, waiting period was lowered by ~1.5 months during the quarter. M&M’s utility vehicle capacity expansion announced last quarter (increase in capacity by ~50%) over the next 18 months remains on track. In farm segment, the company expects 10% growth in FY23E on normal monsoon and high government spending. Benefits from cooling off in the commodity costs have benefitted Q3 margins and the management does not expect further tailwinds ahead. We upgrade our FY23E/24E estimates by 14%/ 9% to factor in increased guidance for tractor volumes, capacity expansion for UVs and higher non-operating income..Click on the attachment to read the full report:. More Research Reports On M&M Q3 FY23 Results Review.Improving Outlook On Auto Segment Driving Up Valuation: ICICI SecuritiesOperationally Inline, Higher Other Income Boost Profit After Tax: Yes SecuritiesStable Outlook For Automotive Segment: Dolat Capital.DISCLAIMERThis 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.

M&M Q3 Results Review - Inline Quarter; Waiting Period Coming Down: Systematix

The management has also highlighted that with deliveries improving, waiting period was lowered by ~1.5 months during the quarter.

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