Higher tractor and auto sales drive Mahindra December quarter net up 7%

Operating margins during the quarter contracted to 13.2% from 14.7% a year ago, due to higher raw material costs that the company was unable to pass on to buyers

Net profit at Mahindra and Mahindra, and Mahindra Vehicle Manufacturers (MVML) rose 7 per cent in the December quarter over a year ago period, the company said on Friday. The earnings were boosted by robust growth in tractors even as higher raw material expenses and high discounts in passenger vehicles and lower commercial vehicles sales weighed on its margins.

The maker of XUV 5OO and Arjun tractors reported a net profit of Rs 12,892 crore during the quarter over Rs 11,491 crore crore a year ago. 

“It was a challenging quarter for tractors, passenger vehicles and commercial vehicles as several