Kotak Institutional Equities expects M&M’s net profit to decline by around 29.4 per cent in September quarter on the back of a 11.3 per cent drop in sales.
It is going to be another dismal quarter for the auto companies, when they unveil their September quarter earnings, as low demand coupled with an inventory correction and production cuts reflected a sharp drop in volumes across segments, denting top lines and bottom lines.
Kotak Institutional Equities said the revenue/Ebitda (earnings before interest, tax, depreciation and amortization)/PBT (profit before tax) for companies under its coverage are likely to decline by 12 per cent, 23 per cent and 37 per cent on a year-on-year basis.
Kotak analysts expect Ebitda margins for their auto universe to decline by 150 basis points on a year-on-year basis due to an increase in discounts following weak retail sales and negative operating leverage.
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