Slowdown looms: Analysts cut M&M forecast on weak Q3

Moneycontrol Bureau

Mahindra & Mahindra's shares fell further in early trade on Wednesday, before reversing some of its losses post disappointing third quarter results.

Stung by higher input costs, M&M's net profit in October-December slid more-than-expected 10% from a year ago quarter, where it had exceptional gains, to Rs 662 crore. And the road ahead for the company, especially for the tractor segment is looking more bumpy.

The utility vehicle and tractor maker reported a better-than-expected 36% rise in net sales, helped by strong demand for SUVs like Scorpio, Bolero and XUV500 and its light commercial vehicles like Gio. However, tractor sales have slowed and the management is expecting subdued demand in the fourth quarter, which will weigh on sales and earnings going ahead.

"Outlook for tractors is weak