Homegrown auto major Mahindra & Mahindra today reported a 27 per cent jump in its standalone net profit to Rs 1,163.27 crore for the second quarter ended September 30, 2016.The company had posted standalone net profit of Rs 915.38 crore in the same quarter last fiscal, M&M said in a BSE filing.
The firm’s total standalone revenue from operations stood at Rs 11,363.63 crore during the period under review as against Rs 9,834.41 crore in the year-ago quarter, up 15.56 per cent.Unit volume sales during the quarter stood at 1,14,795, up 11.6 per cent. Utility vehicles sales were at 52,287 units, up 15.6 per cent from the year-ago period.
Domestic tractor sales during the second quarter were at 57,863 units, up 36.9 per cent from the same period last fiscal, the company said.M&M said its total vehicle exports were higher by 13.3 at 15,181 units during the second quarter.On the outlook, the company said, abundant and well spread monsoon will help revive farm income and push up private consumption.
“Prices of key agricultural inputs have stabilised which signals that farmer balance sheets are on the mend now and this will help revive the overall rural economy,” it said.
The company said, the 7th Pay Commission and OROP have put money in the pockets of government employees and pensioners which will further help demand.
“The lagged effects of the interest rates cuts by RBI along with increased transmission of lower interest rates will also be supportive of consumption. All of these bode well for broad-based consumption-led growth in coming quarters,” M&M said.
Shares of Mahindra & Mahindra Ltd were trading at Rs 1,287 apiece, down 2.60 per cent from the previous close on BSE.