Tuesday, November 9, 2021

M&M Q2 PAT up 14 Times | Sales up 12% | Stock Outlook


Mahindra & Mahindra Q2 PAT up 14-fold at Rs1,929cr on 3-fold spike in EBIT of financial services vertical

Mahindra & Mahindra reported 11.67% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs21,470cr

Mahindra & Mahindra reported 11.67% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs21,470cr. The revenues were higher by 11.99% on a sequential basis compared to Rs19,172cr in the Jun-21 quarter.

The automotive segment saw revenues grow 22.6% at Rs8,245cr while the sale of farm equipment were just about 3.8% higher at Rs6,723cr as the erratic monsoons impacted demand for tractors and other farm equipment.

Debt service coverage ratio improved sharply from 1.72X to 4.67X.

Net profits for the Sep-21 quarter were up 14-fold on yoy basis at Rs1,929cr. On a sequential basis, the net profit was up 4-fold compared to the Jun-21 quarter profits of Rs424cr.

Farm equipment improved market share by 200 bps to 40.1%. Export volumes were up 105% in farm equipment and 86% in autos on yoy basis. Operating margins were attractive at 12.5%.

M&M reported NPMs of 8.98% in Sep-21 quarter compared to 0.70% in the Sep-20 quarter and 2.21% in the Jun-21 quarter. Profit growth may look magnified due to Rs.641cr loss in Sep-20 quarter on loss in discontinued operations.


Hold firmly , newer high will be seen in the stock. Can test 1022 - 1048 in short term.

Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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