Shares of Mahindra & Mahindra rallied over 6% after the utility vehicle and farm equipment major reported a 26.3% growth in net profit at Rs 874 crore for the March quarter, helped by an exceptional gain of Rs 93 crore and higher other income of Rs 294 crore.
The stock gained as much as 6.3% to Rs 1,449 on the BSE. So far, 79,000 shares exchanged hands on the counter against its two-week average of 85,000 shares.
Consolidated revenue from operations (including other income) increased over 5% to Rs 12,889 crore. The company took a one-time hit of Rs 171 crore, owing to restrictions on sale of BS-III vehicles by the Supreme Court (from April 1, 2017).
Mahindra sold 130,778 vehicles in the domestic market during Q4, a flat performance compared to the previous year. “We are not happy to maintain 30 per cent market share in the utility vehicle segment. We have lost market share, given the increase in competition,” Pawan Goenka, managing director, said. Sale of tractors grew 13.3 per cent to 46,583 units in the domestic market. Tractor exports stood at 10, 831 units.
The consolidated annual profit in FY17 stood at Rs 4,050 crore against Rs 3,554 crore in FY16. Consolidated revenue for the year rose 10.6% to Rs 88,983 crore.
The company has a robust outlook for FY18, assuming a favourable global and domestic backdrop.