 "A worker cleans a logo of Mahindra & Mahindra, India's largest utility vehicles maker, inside their showroom in Chennai. Photo: Reuters")
Homegrown auto major Mahindra & Mahindra today reported 14.13% decline in standalone net profit to Rs 807.99 crore for the third quarter ended December 31, hit by weak sales in the tractor segment.
The company had posted a net profit of Rs 942.14 crore in the corresponding period of the previous fiscal, Mahindra & Mahindra said in a regulatory filing.
However, net sales during the period under review stood at Rs 10,900.39 crore as against Rs 9,310.41 crore in the year-ago quarter, up 17.1%.
In the third quarter, Mahindra & Mahindra along with its wholly-owned arm Mahindra Vehicle Manufacturers Ltd (MVML) sold 58,660 utility vehicles while tractor sales stood at 59,883 units in the domestic market, the company said.
"The tractor market remained subdued with a degrowth of 1.5% in the current quarter on account of lower kharif output and a lower Rabi sowing than last year which impacted the income and the sentiments of the farming community," it added.
On outlook, the company said: "With the macro policy environment now turning more supportive and El Nino conditions, along with its adverse impacts on agricultural output and incomes set to dissipate, domestic consumer demand is likely to gain strength in the coming years."
Mahindra shares were trading at Rs 1,100 on BSE, down 2.31% from the previous close.
