Mahindra and Mahindra (M&M) will report its financial results for the quarter ended June 30 on Wednesday. Here are the key expectations.
Mahindra and Mahindra (M&M) will report its financial results for the quarter ended June 30 on Wednesday. The stock price of M&M has been under pressure this year, trading about 30 percent lower in 2019 and close to its 52-week low.
The auto firm's Q1 results are expected to be weak. There is a double-whammy for M&M. On one hand, the auto the utility vehicle (UV) sales have been under a lot of pressure. UV volumes were down almost 6 percent year-on-year (YoY). On the other hand, because of the delayed monsoon, the tractor volumes have fallen 15 percent YoY.
The tractor margins have been down for three consecutive quarters and this quarter as well, there is an expectation that the weakness will continue. The blended margins are expected to fall 14.2 percent versus 15.8 percent earlier. On the profitability front, the Street is expecting a fall of 18 percent.
More importantly, the analysts will watch for whether the management scales down their guidance further.
Here are the key things to watch out for: