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Published on 7/08/2020 3:09:37 PM | Source: Angel Broking Ltd

Quote on 1QFY21 results of Mahindra and Mahindra Ltd by Rajit Rajoriya, Angel Broking

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Below is the Quote on 1QFY21 results of Mahindra & Mahindra Ltd by Rajit Rajoriya, Equity Research Associate, Angel Broking Ltd

“Standalone Net sales of M&M declined by 56% to Rs.5602Cr broadly in line with street estimates. Operating margin fell by 370bp to 10.3% against market expectation of 10.5%. Net profit fell 95% to Rs.112Cr against expectation of fall of 80%. Vehicle sales numbers were down 78% in Q1FY21, However tractor sales number fell by 22%. Company took a major hit due to the pandemic situation with complete washout in April month  in all categories except tractors. Low pipeline inventory coupled with the challenges of ramping up production due to supply chain issues affected the Company's sales. However, strong demand from the farm equipment category helped in a major way. Tractor demand is likely to remain buoyant in coming quarters but the Utility vehicles category is showing no good sign of demand revival.”

 

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