M&M Q2 Result Update
About the Company:
Mahindra & Mahindra was founded as a steel trading company on October 2, 1945 in Ludhiana as Mahindra & Muhammed by brothers Kailash Chandra Mahindra and Jagdish Chandra Mahindra along with Malik Ghulam Muhammad. Anand Mahindra, the present Chairman of Mahindra Group is the grandson of Jagdish Chandra Mahindra. Mahindra & Mahindra Limited is an Indian multinational car manufacturing corporation headquartered in Mumbai, Maharashtra, India. It was established in 1945 as Muhammad & Mahindra and later renamed as Mahindra and Mahindra. It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. It is a part of the Mahindra Group, an Indian conglomerate. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018.
QoQ & YoY Performance:
Automobile industry’s company, M&M declared the results for the second quarter of financial year ending March 2020.
- QoQ Performance: Consolidated Net revenue of the company reported to Rs.23935.93 crores, down by more than 8.00% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs.20626.28 crores, is fell by 8.76%. EBITDA numbers slump by 4.36%.
- YoY Performance: The Company has reported a 5.88% decrease in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed an reduced by 5.61%. EBITDA numbers also fell by 17.54%.
- Profitability of the company: Profit after tax of the company resulted in gain of Rs.368.43 crores, fell by 58.79% QoQ and slump by 78.44% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is currently trading at Rs.582 per share. The Company reported not impressive results. So for this quarter we don’t recommend and avoid buying this stock.