M&M: Tractors to keep growth engine going

Muted June quarter marred by GST compensation, one-offs and utility vehicle underperformance

Muted volume growth, especially in the automotive segment, and the impact of dealer compensation due to the goods and service tax (GST) transition reflected in the June quarter performance of Mahindra & Mahindra. The company took a Rs 144-crore hit as it had to compensate its dealers for losses suffered on account of the shift to GST. This, coupled with one-off gains in the year ago quarter as well as higher tax rates, led to a 20 per cent fall in net profit for the quarter at Rs 765 crore. Consensus estimates had pegged the net profit number at Rs