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Strong UV, tractor biz perk up M&M's PAT

M&M's revenue grew 17 per cent to Rs 12,573 crore

Shubham Parashar  |  Mumbai 

Jeeto Minivan. Photo: Twitter
Jeeto Minivan. Photo: Twitter

Volume growth in the high-margin utility vehicles space and robust expansion in sales of tractors on good monsoons helped Mahindra & Mahindra reported a 22 per cent growth in consolidated profit for the second quarter (including for Mahindra Vehicle Manufacturers Ltd). Profit for the quarter stood at Rs 1,411 crore.

M&M’s revenue grew 17 per cent to Rs 12,573 crore. The company announced a 1:1 bonus share for shareholders. The firm’s stock closed at Rs 1,393.40 at the BSE, up 2.34 per cent from the previous close. “Our volumes witnessed a growth of 7 per cent in the first two months of the quarter, while in September our sales were up by 13 per cent,” said Pawan Goenka, managing director. During the quarter, sold 1,29,754 vehicles. Tractor sales were at 76,984 units and total exports were at 11,755 units.

The company said the growth momentum was likely to witness a cyclical bounce-back once the effects of some of the recent transient factors fade away and the economy adjusts to the new tax regime. Inventory restocking, a normal monsoon and the effect of past interest rate cuts would continue to provide a fillip to growth going forward, the company said.

First Published: Sat, November 11 2017. 00:45 IST