M&M consolidated net down 24% in Q3 at Rs 930 crore

Standalone net rises marginally to Rs 942 crore

Home-grown auto major Mahindra & Mahindra today reported a consolidated net profit of Rs 930.32 crore for fiscal third quarter, down 24% compared to Rs 1,230 crore in the year-ago period.

Its revenue stood at Rs 18,371.91 crore in the latest quarter, as against Rs 20,679.92 crore in the same period last fiscal, the company said in a regulatory filing.

The company said the figures are not comparable from the year-ago levels due to the merger of its associate companies.

"During the quarter pursuant to a scheme of arrangement approved by the Bombay High Court the company's subsidiary, Mahindra Engineering Services along with its subsidiaries merged with Tech Mahindra Ltd, an associate of the company," the company said.

The automotive business revenue stood at Rs 10,691.28 crore, as against Rs 11,984.43 crore in the year-ago quarter, while that of farm equipment stood at Rs 4,049.16 crore as compared to RS 4,668.14 crore in the previous fiscal period.

IT services clocked revenue of Rs 89.35 crore as against Rs 78.42 crore in the same period last fiscal, the company said, adding the financial services segment registered revenue of Rs 1,521.63 crore as against Rs 1,366.14 crore.

On a standalone basis, Mahindra & Mahindra posted Q3 net profit of Rs 942 crore as against Rs 934 crore in the same period last fiscal, logging a marginal rise of 0.85%. 

Standalone revenue was at Rs 10,188 crore as against Rs 11,295 crore in the year-ago period.

On the outlook, the company said: "While domestic demand still remains relatively weak, both consumer sentiment and business sentiment today are significantly stronger than was the case six months ago, which bodes well for business performance in the next fiscal.

"The external economic environment, however, remains weak and riddled with risks. As a consequence, while our outlook on the economy is distinctly more positive than it was six months ago, we remain alert to the possibility of ripple effect emanating for a sudden and sharp deterioration in the extant global economic climate."

Shares of Mahindra & Mahindra were trading at Rs 1,178.55 in the afternoon trade, up 3.93% from the previous close on the BSE.