M&M shares drop over 7 pc as Q3 profit slumps

Shares of Mahindra & Mahindra (M&M) on Monday dropped over 7 per cent after the company reported 73 per cent decline in consolidated net profit for December quarter 2019.

The scrip tanked 7.16 per cent to close at Rs 528.05 on the BSE. During the trade, it tumbled 7.52 per cent to Rs 526.

On the NSE, it fell 7.15 per cent to close at Rs 528.40.

It was the worst hit among the front line companies on both BSE Sensex and NSE Nifty.

Home-grown auto major Mahindra & Mahindra on Saturday reported 73 per cent decline in consolidated net profit at Rs 380 crore for December quarter 2019 due to sluggish vehicle sales.

The company had posted a profit after tax (PAT) of Rs 1,396 crore for the same quarter last fiscal, M&M said in a statement.

Its revenue also moderated to Rs 12,120 crore in the latest quarter as against Rs 12,893 crore in the same period last fiscal, it said.

Vehicle sales during the third quarter stood at 1,23,353 units as against 1,33,508 units in the same period last fiscal, a decline of 8 per cent, the company said.