Mahindra & Mahindra Ltd has reported a near 10 per cent drop in net sales on a standalone basis in the second quarter of the current fiscal compared to the corresponding period last year.
But the company posted a near 10 per cent increase in net profit, aided in part by the decline in tax expenses, though profit before tax showed only a marginal increase.
According to the unaudited results, the total income from operations declined to Rs 8,929.57 crore compared to Rs 9,812.96 crore in the same quarter last year. Profit from ordinary activities before tax was Rs 1,246.30 crore in Q2 of this year compared to Rs 1,215.95 crore in the same quarter in 2012-13.
Net profit edged up by 9.7 per cent to Rs 989.50 crore in the quarter ending September 30, 2013, as against Rs 901.80 crore in the corresponding period last year.
The EPS was higher at Rs 16.76 (Rs 15.30).
M&M said its South Korean acquisition Ssangyong Motor Company Ltd, that broke even in Q1, "continued its profitable ways" with a 20 per cent growth in consolidated revenues and a 114 per cent growth in results.
On the Indian economy’s outlook, M&M was optimistic that the second half of the current fiscal would be better. Because of domestic policy actions and with the US Fed putting off tapering, the "near term balance of payments risks" facing the Indian economy had eased. The good agricultural harvest was likely to dampen inflation even while boosting rural output, income and demand. With the developed markets recovering and rupee "no longer over-valued", exports should pick up. Given these factors, "our current outlook on the economy is one of cautious optimism", M&M said in its statement.
Shares of M&M were trading at Rs 893.40, up by Rs 14.15, after the results were announced.
But the company posted a near 10 per cent increase in net profit, aided in part by the decline in tax expenses, though profit before tax showed only a marginal increase.
According to the unaudited results, the total income from operations declined to Rs 8,929.57 crore compared to Rs 9,812.96 crore in the same quarter last year. Profit from ordinary activities before tax was Rs 1,246.30 crore in Q2 of this year compared to Rs 1,215.95 crore in the same quarter in 2012-13.
Net profit edged up by 9.7 per cent to Rs 989.50 crore in the quarter ending September 30, 2013, as against Rs 901.80 crore in the corresponding period last year.
The EPS was higher at Rs 16.76 (Rs 15.30).
M&M said its South Korean acquisition Ssangyong Motor Company Ltd, that broke even in Q1, "continued its profitable ways" with a 20 per cent growth in consolidated revenues and a 114 per cent growth in results.
On the Indian economy’s outlook, M&M was optimistic that the second half of the current fiscal would be better. Because of domestic policy actions and with the US Fed putting off tapering, the "near term balance of payments risks" facing the Indian economy had eased. The good agricultural harvest was likely to dampen inflation even while boosting rural output, income and demand. With the developed markets recovering and rupee "no longer over-valued", exports should pick up. Given these factors, "our current outlook on the economy is one of cautious optimism", M&M said in its statement.
Shares of M&M were trading at Rs 893.40, up by Rs 14.15, after the results were announced.
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