Mahindra & Mahindra was down 2.33% to Rs 1,446.10 at 15:01 IST on BSE after net profit rose 12% to Rs 955 crore on 14% growth in gross revenue plus other income to Rs 12160 crore in Q1 June 2016 over Q1 June 2015.
The result was announced during market hours today, 10 August 2016.Meanwhile, the S&P BSE Sensex was down 275.63 points or 0.98% at 27,809.53.
On BSE, so far 3.06 lakh shares were traded in the counter as against average daily volume of 95,075 shares in the past one quarter. The stock was volatile. The stock lost as much as 3% at the day's low of Rs 1,436 so far during the day. The stock rose as much as 0.97% at the day's high of Rs 1,494.95 so far during the day. The stock had hit a record high of Rs 1,508.80 yesterday, 9 August 2016. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016.
The company's bottom line in Q1 June 2016 was boosted by an exceptional gain of Rs 91 crore from transfer of agri business to a wholly owned subsidiary company. Surge in non-operational income also aided the bottom line growth in Q1 June 2016. Other income jumped 31.89% to Rs 216.83 crore in Q1 June 2016 over Q1 June 2015.
The combined net profit of Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 16% to Rs 962 crore on 14% growth in gross revenue plus other income to Rs 11961 crore in Q1 June 2016 over Q1 June 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
M&M said that the double digit growth in domestic sales of tractors witnessed in Q1 June 2016 suggests that a recovery in rural demand is now underway. The company further said that its outlook on domestic growth remains positive even as it recognizes the downside risks currently emanating from major advanced economies.
M&M enjoys a leadership position in tractors and utility vehicles.
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