Moneycontrol Bureau
Mahindra and Mahindra (M&M) beat street expectations on bottomline and topline front while operating performance was in line. Consolidated net profit grew 5.7 percent year-on-year to Rs 967 crore supported by an exceptional gain of Rs 299 crore during October-December quarter. The slow growth in profit was due to lower revenue and operating performance.
Consolidated numbers also include Mahindra Vehicle Manufacturers earnings.
Net profit was expected at Rs 615 crore on revenue of Rs 8,900 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Total income of the utility vehicle company fell 9.7 percent to Rs 9,260 crore in December quarter compared to Rs 10,255 crore in same quarter last year due to lower sales volumes.
Total sales volumes of the company declined 16.2 percent Y-o-Y to 1.73 lakh units in Q3 led by weak passenger utility vehicle (down 12 percent) and tractor volumes (down 25 percent).
Farm equipment (tractor) business during the quarter slipped 15.3 percent to Rs 3,472 crore and automotive segment revenue went down 5.8 percent to Rs 5,817 crore on yearly basis.
Consolidated operating profit was down 24.8 percent year-on-year to Rs 1,080 crore and margin dropped 230 basis points to 11.7 percent in the quarter gone by. Analysts had estimated operating profit of Rs 1,050 crore and margin at 11.8 percent for the quarter.
At 14:25 hours IST, the scrip of Mahindra and Mahindra was quoting at Rs 1,174.05, up Rs 40.05, or 3.53 percent amid high volumes on the BSE.
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