Mahindra & Mahindra Ltd.'s net profit was up by 67 percent for the April-June quarter from a year ago period to Rs 1,257 crore, as per its stock exchange filing. The Anand Mahindra-led automaker performed better than analysts expectations due to strong operational performance.
The company's revenue grew by 23 percent on a year-on-year basis to Rs 13,358 crore, driven by the automotive segment. It sold 1.3 lakh vehicles in the first quarter of 2018-19, including 96,000 tractors and 12,700 exported units.
Revenue from the automotive segment was up by 23 percent to Rs 8,032 crore. For the quarter in question, farm equipment sales rose 24 percent to Rs 5,007 crore.
Despite higher commodity costs, the company's operational performance met Bloomberg estimates. Earnings before interest, tax, depreciation, and amortization (EBITDA) was 47 percent higher at Rs 2,110 crore from last year while operating margin expanded 140 bp to 15.8 percent.
Shares of the Mahindra and Mahindra gained after the declaration of results.