Mahindra & Mahindra Ltd, India's largest utility vehicle maker, posted a better-than-expected 10 per cent rise in quarterly (Q2) profit as lower costs and strong demand for its tractors made up for slowing SUV sales.
Mahindra & Mahindra today reported an increase in standalone net profit at Rs 989.5 crore for the quarter ended September 30, aided by lower expenses.
Mahindra & Mahindra had reported a profit of Rs 901.8 crore a year earlier.
Mahindra & Mahindra net sales during the three months ended September 30 were at Rs 8,814.33 crore, down 8.74 per cent from Rs 9,659.2 crore in the same period last year, M&M said in a BSE filing.
Expenses were at Rs 7,981.64 crore, down 10.04 per cent from Rs 8,872.43 crore.
Mahindra & Mahindra shares traded at Rs 885.85 in the afternoon on the BSE, up 0.75 per cent.
Read the full statement from the Mahindra & Mahindra on the September quarter results:
The Board of Directors of Mahindra and Mahindra Limited today announced the unaudited financial results for the quarter ended 30th September 2013 for the company.
Mahindra Vehicle Manufacturers Limited (MVML), located at Chakan near Pune, was set up as a 100% subsidiary of the company with a view to sourcing contemporary products for expanding the market offerings of the company. Hence it is a critical part of its business and only the combined results of the company and MVML can provide a comprehensive view of company’s performance.
* Q2 F2014 – M&M + MVML results
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. and MVML (Entity) for the quarter ended 30th September 2013 is Rs. 9887.6 crore as against Rs. 10786.7 crore during the corresponding period last year. The Net Profit before tax for the current quarter is Rs. 1303.6 crore as against Rs.1327.2 crore in Q2 previous year. After providing for tax, the profit is Rs. 1027.6 crore against Rs. 978.1 crore in Q2 last year - a growth of 5.1%. The operating margin of the Entity for the current quarter is 14.5% as compared to 13.8% in Q2 last year.
The deceleration in the Gross Revenues in the quarter is due to the challenging times the Indian auto industry, with volumes shrinking by 4% during Q2, is currently passing through. Despite this, the entity could deliver a growth in the profits in the quarter due to a strong sales performance by its Farm Equipment