M&M net up 0.86%

Despite a big boost in exceptional income to the tune of Rs 299.34 crore, auto major Mahindra & Mahindra (M&M) has reported a marginal 0.86 per cent increase in standalone net profit for the third quarter ended December 31, 2014, at Rs 942.14 crore compared with Rs 934.06 crore in the same quarter of the previous fiscal.

Net sales for the Mahindra Group controlled company, however, declined 9 per cent to Rs 9,465.94 crore compared with Rs 10,404.91 crore in the comparable period.

The exceptional income of Rs 299.34 crore is the excess of fair value of Tech Mahindra shares received in terms of the scheme over the carrying cost of investments in Mahindra Engineering Services (MESL), M&M said.

M&M sounded cautious about the business prospects for the next fiscal.

“While domestic demand still remains relatively weak, both consumer sentiment and business sentiment today are significantly stronger than was the case six months ago, which bodes well for business performance in the next fiscal,” M&M said.

The external economic environment, however, remains weak and riddled with risks, M&M added.