The company and its arm Mahindra Vehicle Manufacturing’s revenues in the quarter grew 16 per cent on year to Rs 14,057 crore.
Analysts had expected the company and its arm to report a combined net profit of Rs 1,461 crore on revenues of Rs. 13,972 crore.
The operating margin of M&M and Mahindra Vehicle expanded 220 basis points from the year-ago quarter to 17 per cent as the company said it saw a lot of cost optimisation and operating leverage during the quarter.
“Tractor volumes grew by 19.6% on the back of a robust rural story. We expect strong demand to continue,” M&M said in a press statement.
The company also said that demand for automotive continues to be strong. The utility vehicle business grew 11% though production was lower than demand due to semi-conductor shortage and steel shortage, the company said.
During the quarter, the tractor maker took a one-time impairment charge of Rs 1,214 crore, which hurt its bottomline performance. Excluding for the one-time loss, the company and its arm’s combined net profit would have been Rs 1,745 crore, higher than analysts’ estimates.
