M&M Q2 profit seen up 6%; revenue growth may be 20% led by tractor business

Utility vehicle and tractor maker Mahindra & Mahindra is expected to report 6 percent growth in profit and 20 percent in revenue from operations, driven by tractor business.

Profit is seen at Rs 1,228 crore for the quarter against Rs 1,163.33 crore and revenue may grow to Rs 12,219 crore from Rs 10,171 crore on year-on-year basis, according to average of estimates of analysts polled by CNBC-TV18.

Analysts feel the low base (Q2FY17) in auto segment and improvement in tractor volumes may boost earnings.

Operating profit is likely to increase 8 percent year-on-year to Rs 1,582 crore but margin may shrink 140 basis points to 13 percent for quarter ended September 2017. Analysts see sequential improvement in margin.

M&M's overall sales volume growth was at 16 percent for the quarter YoY, driven by 31 percent growth in tractor segment and 9 percent in automotive business.