M&M Q4 Review - Management Focus Pivots Towards Growth: ICICI Securities

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ICICI Securities Report

Mahindra and Mahindra Ltd.’s Q4 FY21 result were slightly below consensus estimates as Ebitda margin came in at 14.7% (down 227 basis points QoQ).

Margins were dragged by the automotive segment (Ebit margin: 5%, down 243 basis points), while farm equipment segment was resilient (Ebit margin: 22%, down 139bps).

Management shared a new product plan (five-years) for sports utility vehicles (nine products) /light commercial vehicles (14 products), pure electric vehicle options (six products) would also be developed.

Investments into electric (Rs 30 billion) signals clarity of strategy as the company would be able to build a learning curve advantage vis-a-vis domestic peers who are investment shy on electric vehicles.

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