Mahindra's Q2 profits rise 9.7% despite a 4% drop in sales.
New Delhi, Nov. 13 -- Indian auto major Mahindra and Mahindra has reported a 9.7 per cent rise in profits after tax for the quarter that ended September 30th, on hand of strong sales performance of its farm equipment sector and a tight control on material costs.
The company's gross revenues for the July-September period stood at Rs 9,890 crore, a decline of 9 per cent when compared to the Rs 10,891 crore posted in the year earlier period. However, the company's profits after tax for the quarter stood at Rs 989.5 crore as against Rs 901.8 crore in the same period last year.
Despite a 4 per cent drop in sales during the quarter, M&M was able to increase its profits due to the strong performance of its farm equipments sector. Tractor sales grew by 21.2 per cent at 1,41,171 units during Q2 when compared to 1,16,524 units sold in the same period last year.
It's much the same story when it comes to half-yearly results of Mahindra. Gross revenues fell to Rs 20,778 crore for the first half of the current fiscal, as against Rs 21,007 crore in the same period last year. Profits however rose by 18.4 per cent to Rs 1,927 crore as against Rs 1,627 crore in the first half of last year.
A blockbuster monsoon and tight control on expenses has allowed the company to post growth in the first half of the year. However the full potential of growth isn't met given the uncertain economic conditions in India that have led to the decline of the auto industry for the first nine months of this calendar year.
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|Date:||Nov 13, 2013|
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