Auto major Mahindra & Mahindra (M&M) will announce its second-quarter results on Friday. It is expected to be a weak quarter for the company. Here are the key expectations:
- Revenues are expected to fall by 12.5 percent year-on-year (YoY) at Rs 11,188 crore.
- The margins will get compressed to 12.5 percent versus 14.5 percent last time.
- The auto segment margins have been under a lot of pressure because of the high amount of discounts as well as competition.
- In the tractor segment as well, 8 percent volume decline is seen this time.
- The profit is likely to decline by 37 percent.
- The new corporate tax structure could help profit look better than estimated, however, overall, the operational performance will be weak.