Mahindra and Mahindra reported 3.35 per cent fall in its standalone net profit at Rs 852.20 crore in the first quarter of the ongoing financial year, hurt by slowdown in automotive and farm equipment segments. It beat market estimates as Angel Broking, a brokerage firm, was expecting net profit at Rs 742 crore for April-June 2015 period against Rs 881.78 crore in the corresponding quarter a year ago.
For the quarter ended June 30, 2015, Mahindra and Mahindra reported revenue of Rs 9,830.38 crore, down 4.21 per cent, against Rs 10,261.90 crore in the same quarter last year.
The company had posted a net profit of Rs 881.78 crore in the corresponding period of the previous fiscal, Mahindra & Mahindra said in a filing to BSE.
Net sales during the period under review stood at Rs 9,708.05 crore as against Rs 10,006.85 crore in the year-ago quarter, down 2.9 per cent.
Bharat Gianani, senior research analyst, automobile, Angel Broking said, “M&M 1Q FY2016 results were ahead of estimates primarily on account of strong operating performance. M&M operating margins at 14.3 per cent surprised positively and were significantly ahead of our as well as consensus estimates. Subdued raw material prices, cost control initiatives also boosted the margins. Given the margin beat, we are likely to upgrade our estimates after understanding the margin sustainability from the management.”
On the outlook, the company said the Indian economy is gradually gaining momentum. Stalled projects are coming back on line while new project announcements have picked up pace in the past couple of quarters.
The share price closed 0.47 per cent lower at Rs 1,387.65.