Automobile major Mahindra and Mahindra (M&M) reported a 60% increase in its December quarter net profit to ₹1,476 crore, including one-off gains even as margins fell.
The profit came on 14% growth in revenue to ₹13,235 crore and 12% growth in profit before tax to ₹1,505 crore. During the quarter, M&M realised ₹80 crore charge on account of impairment provision on certain investments.
Focus on margins
Commenting on the results, Pawan Goenka, MD, M&M, said, “In auto, we focused on the volume growth and in tractors, we focused on the margins. The demand for auto is improving in rural areas.”
“M&M Q3 numbers were below our as well as consensus estimates on the operating front. During the quarter, higher other income due to dividend from subsidiaries and JV and low tax led to adjusted net profit growing 60% Y-o-Y and was ahead of estimates,” said Bharat Gianani, research analyst, Sharekhan by BNP Paribas.
