Shares of M&M on Thursday closed at Rs 927.75, up 3.93%, on the BSE.
The high profit is on the back of low raw material costs, volume recovery and cost management efforts undertaken by the company. The profit before tax of the company includes a one-time gain of Rs 91 crore arising from the sale of share in subsidiary MHRIL, part of the unit's initial public offering. The good performance by its farm equipment sector also boosted its profit as domestic sales grew 32% and the benefits of merger of Punjab Tractors showed up in the quarterly performance.
Talking to the media here, Bharat Doshi, M&M chief finance officer, said, We are at the best point (in terms of volumes, interest rates and raw material costs). But there are concerns over raw material costs hardening in the coming quarters.