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M&M net profit declines 6% to Rs 882 cr

PTI 08 Aug 2014, 17:15:56 PM IST
Mumbai: Homegrown auto major Mahindra & Mahindra today reported a 5.98 per cent decline in its standalone net profit at Rs. 881.78 crore for the first quarter ended June 30, 2014.
The auto major had posted a net profit of Rs. 937.91 crore during the same period a year ago.

Net sales on a standalone basis during the April-June quarter declined marginally to Rs. 10,597.07 crore from Rs. 10,607.27 crore, Mahindra & Mahindra said in a filing to the BSE.
During the quarter under review, revenues from automotive segment stood at Rs. 5,988.60 crore against Rs. 5,980.62 crore in the same period last fiscal, and that from farm equipment was Rs. 3,932.85 crore (Rs 3,899.52 crore).
“The automotive industry in India is currently facing very challenging times. In the June quarter, in spite of the stiff competition, the entity sold 52,180 utility vehicles and continued its leadership with the market share of 40.5 per cent. The entity also exported 6,565 vehicles in the quarter under review,” the company said.
Farm equipment sales
On the farm equipment sales, the company said crop damage due to unseasonal rains in some parts of India in March coupled with deficient monsoon in June led to a marginal de-growth of 1.2 per cent in the domestic tractor industry in Q1 of 2014-15.
In this period, the entity sold 72,166 tractors in the domestic market as compared to 71,696 units sold in Q1 of the previous year,” it added.
On the outlook, Mahindra & Mahindra said the economy has been displaying some positive trends but if the south west monsoon continues to be weak, it would impact both inflation and consumer demand negatively in the near term.
Shares of the company were trading at Rs. 1,232.10 per scrip on the BSE during the afternoon trade, down 1.18 per cent from their previous close.