M&M Q1 net declines 3.4% to Rs 852 cr

Weighed down by lack of new products in the passenger vehicle space and drastic fall in demand for tractors, Mahindra & Mahindra posted 3.4% fall in net profit for the quarter ended June 30, 2015. The company, however, managed to beat street estimates.

The Mumbai-based company reported Rs 852 crore net profit for the reporting quarter as against Rs 882 crore posted in the same quarter last year. A Bloomberg poll of analysts had estimated the net profit to be at Rs 741 crore.

The company received a dividend of Rs 169 crore from subsidiaries for the quarter.

Net sales of the company stood at Rs 9,708 crore during the quarter as compared to Rs 10,006 crore posted in the same quarter last year, a 3% decline.

Sales of utility vehicles where the company had a market share of 38.5% as of June 30, 2015, reported a fall of 5.4% to 49,354 units as compared to 52,180 units sold in the corresponding quarter a year earlier.

Sales of tractors in the first quarter dipped by 16% to 62,358 units as against 74,555 units sold in the same quarter last year. The dip in domestic sales, which is 95% of the total sales, was more severe at 18%.

At 1335 hours on Friday, the company's stocks on BSE were trading 1.7% higher at Rs 1,418 apiece.

Mahindra India