Mumbai: Auto manufacturer Mahindra & Mahindra Ltd (M&M) declared a 31.7% increase year-on-year in its profit after tax, riding on a 20.3% rise in farm equipment sales, which includes the high-margin tractors business.
M&M saw profits rise to Rs1,112.27 crore up from Rs834.47 crore a year ago. The company’s quarterly revenues increased 14.7% to Rs11,777.98 crore.
However, M&M saw a 7% decline in the company’s revenue from the automotive segment—its largest line of business—to Rs7,453.08 crore. This comprises M&M’s utility and commercial vehicle sales.
“India’s macro momentum suffered a dislocation in the form of withdrawal of high frequency notes by the government in November with discernible impact on consumption and investments,” the company said in a statement. “Demonetisation has had short-term costs but holds the potential for long-term benefits.”