M&M Q3 results largely in-line with estimates, net profit up 33%

Mahindra and Mahindra Ltd. (M&M) reported its third quarter earnings on Wednesday, February 11, which were largely in-line with estimates.

Its internals remain healthy, while auto and farm mix was in the 67:33 proportion.

The automaker's standalone net profit increased 32.6% for the December quarter to ₹3,931 crore from the previous year's ₹2,964 crore. It was slightly ahead of Street expectations of ₹3,904 crore.

Its standalone revenue from operations increased 26% to ₹38,517 crore, up from ₹30,538 crore in the third quarter of the previous year. However, it was below the Street estimate of ₹38,843 crore.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27% to ₹5,668 crore, compared with ₹4,468 crore a year earlier. This was slightly lower than the CNBC-TV18 poll estimate of ₹5,715 crore.

EBITDA margin stood at 14.7%, in line with Street expectations and marginally higher than 14.6% reported in the corresponding quarter last year.

Following the result announcement, shares of the company fell as much as 2.5% from the day's high before they rebounded. The stock was trading 1.87% up at ₹3,747.60 as of 12.15 pm, it has gained 17.62% in the past six months.