Mahindra and Mahindra's profitability margins dwindle in Q1FY17

Mahindra and Mahindra (M&M) has announced its Q1FY17 results on August 10. The company’s revenue has increased by 14.06 per cent to Rs 11943 crore in Q1FY17 as compared to same period in previous financial year. Its EBITDA too has risen by 3.29 per cent to Rs 1286 crore in Q1FY17 on a yearly basis. However, M&M’s EBITDA margin has contracted by 112 basis points to 10.77 per cent in Q1FY17 as compared to same period in previous financial year. The company’s net profit also has risen by 12.56 per cent to Rs 959 crore in Q1FY17 on a yearly basis. However, its net profit margin has contracted by 11 basis points to 8.14 per cent in Q1FY17 as compared to same period in previous fiscal.

On the segmental revenue front, M&M has earned 65.48 per cent from Automotive; 34.45 per cent from Farm Equipment; and 0.07 per cent from others during Q1FY17.

The share price of M&M has declined by 2.17 per cent on bourses in early trades; and is trading at Rs 1424.4 on an intraday basis.

M&M has operations in 18 industries that include aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defence, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure & hospitality and logistics.