M&M Q1 profit falls 3.35pc on lower sales
Mahindra and Mahindra Ltd (M&M) reported a 3.35% drop in net profit in the first quarter of the current fiscal on the back of fall in sales, but beat analyst expectations.
Standalone net profit fell 3.35% to Rs.852.20 crore as compared to Rs.881.78 crore a year ago. Net sales fell 3% to Rs.9,708.05 crore as compared to Rs.10,006.85 crore. A Bloomberg poll of 27 analysts estimated net profit at Rs.741.1 crore and net sales of Rs.9,831.8 crore. M&M's consolidated net profit contracted 7.3% on lower tractor and passenger vehicles sales, the company said in a filing to the stock exchanges on Friday. The maker of Scorpio and XUV 500 models reported consolidated net profit of Rs.831 crore against Rs.896 crore a year ago.
In a market, which is being driven by new models, absence of the same weighed on the company's volumes. During the quarter, passenger vehicles sales for the company dropped to 53,479 units against 57,656 units a year ago.