Mahindra & Mahindra Q1 profit rises 12.37% to Rs955.21 crore
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Mumbai: Mahindra and Mahindra Ltd (M&M) on Wednesday said its net profit in the June quarter rose 12.37% from a year ago on higher sales, other income and lower finance cost.
Net profit of India’s largest utility vehicle and tractor maker was Rs.955.21 crore, against Rs.850.09 crore last year.
Net sales also increased 14% to Rs.11,800.19 crore from Rs.10,348.54 crore last year.
A Bloomberg poll of 24 brokers had forecast a net profit of Rs.893.50 crore, and a poll of 21 brokers had estimated net sales of Rs.10,991.90 crore.
Other income rose 32% to Rs.216.83 crore, while finance cost fell 38% to Rs.24.19 crore.
“Despite rising global uncertainties, India’s economic recovery is slowly but surely gaining momentum. While public investment expenditures remain strong, urban demand has been picking up pace since the third quarter of the previous fiscal and is expected to receive further impetus from the seventh pay commission awards, which will be given effect in the current month,” the company said in its outlook statement.
“More importantly, the double digit growth in domestic sales of tractors and two-wheelers witnessed in the first quarter of FY2017 suggests that a recovery in rural demand is now underway,” it added.
Shares of M&M closed 2.21% lower at Rs.1,447.85 apiece on BSE, while India’s benchmark Sensex fell 1.10% to 27,774.88 points.