M&M Q2 net plunges 88% to Rs 162 cr on sharp contraction in auto segment

Robust tractor sales cushion impact of lower volumes in automotive segment, help firm beat street estimates

Mahindra and Mahindra’s net profit, including that of Mahindra Vehicle Manufacturing (MVML), plunged 88 per cent year-on-year (YoY) in the quarter ended September 30 (Q2) as a sharp contraction in the automotive segment weighed on earnings, the firm said in a stock exchange notification.

However, robust sales of tractors cushioned the impact of lower volumes in the automotive segment and helped the firm beat Street estimates.  

Net profit of the firm fell to Rs 162 crore in Q2 as against to Rs 1,355 crore a year ago. The deep contraction came on the back of an impairment charge of Rs 115 crore