Mahindra & Mahindra Ltd (M&M) has posted a 0.86 per cent rise in standalone net profit of ₹942.14 crore in the third quarter ended December 31, despite a sluggish automotive industry.
The auto manufacturer had posted a net profit of ₹934.06 crore for the same period a year ago.
The company's total income fell to ₹9,667.08 crore during the quarter under review against ₹10,650.32 crore posted during the same period a year ago, the company said in a regulatory filing.
“This quarter was a mixed bag for the auto industry, with certain sectors doing well and certain others under pressure. The interest rates continued to remain high and the growth in the rural economy was also impacted due to the delayed and deficient monsoon,” said Pawan Goenka Executive Director and President Automotive & Farm Equipment Sectors (AFS).
“M&M’s de-growth in tractors was higher than industry at 26 per cent, while in automotive we de-grew 12 per cent,” Goenka said, adding, this was because the company did not have any products, save for a Scorpio.
M&M together with Mahindra Vehicle Manufacturers Ltd (a wholly-owned subsidiary set up to source products) posted a 5.7 per cent rise in net profit at ₹967 crore (₹914 crore).
The gross revenues and other income of the combined entity fell to ₹10,087 crore (₹11,286 crore) during the quarter.
There was a one-time gain of ₹299 crore during the quarter, following the merger of Mahindra Engineering Services Ltd and Tech Mahindra Ltd, said Chief Financial Officer VS Parthasarathy.