Mahindra CIE Automotive has dipped 12% to Rs 169, also its 52-week low on the BSE, after the company reported a sharp 65% year on year (yoy) drop in its consolidated net profit at Rs 148 crore for the quarter ended December 31, 2015 (Q3FY16). The company had registered a profit of Rs 424 crore in the same quarter last year.
Revenues during the quarter review grew 1.1% yoy at Rs 12,679 crore against Rs 12,542 crore in the corresponding quarter of previous year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins declined to 8% from 9.6%.
The ruling of the Honourable Supreme Court of India restricting sales of diesel vehicles in the National Capital Region will negatively impact Mahindra & Mahindra (M&M) and Tata Motors who have a higher proportion of diesel vehicles in their portfolio compared to other OEMs, Mahindra CIE said in a release.
European commercial vehicles (CVs) are expected to show positive growth but the market mood remains uncertain. The agricultural machinery and earthmoving markets continue to be stressed and expected to shrink further in calendar year 2016 (CY16), it added.
At 10:34 AM, the stock was down 11.5% at Rs 171 on the BSE. A combined 380,529 shares changed hands on the counter on the BSE and NSE.
Revenues during the quarter review grew 1.1% yoy at Rs 12,679 crore against Rs 12,542 crore in the corresponding quarter of previous year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins declined to 8% from 9.6%.
The ruling of the Honourable Supreme Court of India restricting sales of diesel vehicles in the National Capital Region will negatively impact Mahindra & Mahindra (M&M) and Tata Motors who have a higher proportion of diesel vehicles in their portfolio compared to other OEMs, Mahindra CIE said in a release.
European commercial vehicles (CVs) are expected to show positive growth but the market mood remains uncertain. The agricultural machinery and earthmoving markets continue to be stressed and expected to shrink further in calendar year 2016 (CY16), it added.
At 10:34 AM, the stock was down 11.5% at Rs 171 on the BSE. A combined 380,529 shares changed hands on the counter on the BSE and NSE.
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