Mahindra and Mahindra has reported a 14.2 per cent decline in net profit for the third quarter ended December 31, 2015 at Rs 807.99 crore compared to Rs 942.14 crore in the same quarter last fiscal.
Net sales for the company grew 17.07 per cent to Rs 10,900.39 crore as against Rs 9310.41 crore in the comparable quarter. During the quarter, the tractor business achieved highest market share in last sixteen quarters while the operating profit margin for the company was the best since FY11.
Exceptional item for the company during the quarter fell significantly to Rs 62.75 crore compared to Rs 299.34 crore in Q3FY15. During the quarter, the company entered into share purchase agreements with Mahindra Vehicle Manufacturers (MVML), its wholly owned subsidiary, to transfer the company's entire equity investments in certain subsidiaries and associates.
Engaged in domestic automotive manufacturing and support businesses at fair value. The net resultant gain of Rs 62.75 crore (net of Rs 61.48 crore credited to investment fluctuation reserve) has been disclosed as an exceptional item.
The company expects a good future going ahead. "With the macro policy environment now turning more supportive and El Nino conditions, along with its adverse impacts on agricultural output and incomes, set to dissipate, domestic consumer demand is likely to gain strength in the coming quarters. Consequently, despite continued weakness in external demand India’s economic growth is expected to gain momentum in the coming financial year. Our company fully intends to harness the business opportunities that this will present and looks to the future with confidence," M&M said.