NEW DELHI: Tractor maker Mahindra & Mahindra on Friday reported a 5.69 per cent drop in consolidated profit at Rs 801.06 crore for the December quarter hurt by the cash ban.
The maker of sports utility vehicles (SUVs) had reported a net profit of Rs 849.41 crore in the corresponding quarter of last year. The numbers included the financials of MVML, a manufacturing unit.
The combined net sales for the quarter grew 1.16 per cent YoY at Rs 10,586 crore, compared with Rs 10464.51 crore in the same quarter last year.
The company noted that the quarter was challenging given the impact of demonetisation, with significant drop in demand across segment in November and December. The company reported a 8.3 per cent drop in vehicles sold during the quarter at 11,2852 units. Sales of utility vehicles were down 11.7 per cent YoY, but tractor sales soared 20.8 per cent during the quarter.
“India’s macro momentum suffered a dislocation in the form of withdrawal of high frequency notes by the government with discernible impact on consumption and investment,” the company said.
“The underlying India story essentially remains positive,” the company said, that demonetisation has had short term cost but holds the potential for long-term benefits.
The company said its share in tractor market jumped to 44 per cent during the quarter, which was the highest since 2007.
On standalone basis, profit was up 31.77 per cent at Rs 1112.79 crore, while sales were up 2.42 per cent at Rs 11777.98 crore.