Hit by currency losses, and sharp rise in input costs Mahindra and Mahindra’s net profit for the first quarter dipped by 16.6 per cent to Rs 159.30 crore from Rs 191.17 crore a year ago.
Its revenues, however, reporting quarter ended June 2008, rose to Rs 3,331.80 crore from Rs 2,644.38 crore in April-June 2007, the company said in a release today.
The automotive and farm equipment company booked the exchange loss of Rs 77.9 crore due to rupee depreciation. The exchange loss includes loss of Rs 58.20 crore due to revaluation of Foreign Currency Convertible Bonds worth $ 200 million issued in April 2006.
The profits were also affected by sharp rise in input costs which put pressure on operating margins. The rise in depreciation and finance cost also affected the profits in the first quarter, the company said.