Demonetisation hits Mahindra & Mahindra Q3 sales; net profit up 33%
The company's total income increased to Rs 11,888.1 crore in Q3FY17.
Mahindra & Mahindra on Friday announced its financial result for the quarter ended on December 31. The company reported a standalone net profit of Rs 1,112.27 crore, a rise of 33% as against Rs 834.47 crore during the third quarter of previous fiscal.
The company's standalone total income increased to Rs 11,888.1 crore in Q3FY17 as against Rs 11,694.6 crore in Q3FY16.
On the back of demonetisation, the company sales in the domestic market dropped by 8.3% on year-on-year basis to 1,12,852 vehicles. The sales of utility vehicles decreased by 11.7% to 51,772 units on y-o-y basis and sold 72,363 tractors in the domestic market, registering a growth of 20.8%.
"The auto industry was adversely impacted in Q3FY17 due to demonetisation with all segments of the industry showing significant drop in demand in the months of November and December, 2016," the company said.
The gross revenues and other income during the quarter stood at Rs 36,119 crore, a rise of 11% on yoy basis.
"The government has embarked on follow-up actions to minimize the costs and maximise the benefits including remonetisation, a prudent budget with continued thrust on agriculture, rural and affordable housing segments, tax cuts for individuals as well as MSMEs and further lowering of the fiscal deficit that will pave the way for continued downward journey in cost of capital. Thus, growth is likely to return towards the trend in FY18 following a temporary decline in FY17," the company added.
At 1430 hours the shares of the company were trading at Rs 1,294.90 per piece, up 0.22% or Rs 2.85 on BSE.