Mahindra & Mahindra (M&M) on August 5 reported a 67 percent year-on-year rise in net profit to Rs 1,430.2 crore for the quarter ended June, missing analysts' estimate of Rs 1,556 crore.
The tractor maker reported a 67 percent year on year rise in revenue from operations to Rs 19,612.6 crore, which was in line with Street's expectations.
"We saw good momentum across all our group companies led by strong results of the auto and farm sector," said managing director and chief executive Anish Shah in a statement.
The tractor segment recorded the second highest ever profit before interest and tax in the quarter of Rs 1,074 crore. Overall M&M's operating profit for the quarter jumped 43 percent to Rs 2,341 crore, which was also below expectations of Rs 2,507.7 crore.
Overall, operating margin for M&M stood at 11.9 percent for the reported quarter, which was also below estimate of 12.9 percent.
Strong topline growth was aided by the farm equipment business as tractor volumes clocked 18 percent growth to 117,413 units as well as price hikes during the three-month period. M&M said market share in the tractor business inched higher by 90 basis points to 42.7 percent.
The firm added that the automotive business also displayed strength during the quarter as open bookings stood at more than 165,000 units, indicating strong demand.
"With 273,000 plus bookings, the demand for the automotive product portfolio remains strong," said executive director Rajesh Jejurikar.