Mahindra and Mahindra, leading automobile manufacturing company, recorded a 26% YoY increase in net profit to Rs 1,778.75 crore for the July-September quarter. During the same quarter last year, M&M posted profit of Rs. 1,410.86 crore. The earnings take into account combined financials of both M&M and Mahindra Vehicle Manufacturers (MVML).
The combined revenue of the company also surged 6% YoY from Rs 12,019.37 crore in Q2FY18 to Rs 12,790.17 crore during the reporting period.
Operating profit i.e. the earnings before interest, taxes, depreciation and amortization (EBITDA) however registered a decline from Rs 1,923 crore in the year ago period to Rs 1,849 crore during the quarter ending September. The operating margin came in lower at 14.4% versus 16% in the year-ago period.
M&M's tax expenditure increased from Rs 555 crore last year to Rs. 848 crore in the last ended quarter whereas it made a one-time gain to the tune of Rs. 137.5 crore during the same quarter.
The revenue of its tractor segment also increased 1.8% YoY to Rs. 4,028 crore during the quarter while its EBIT registered a fall of 3% to Rs. Rs 813 crore as against Rs 841 crore in the same quarter last year.
After the announcement of Q2 earnings, the stock of M&M was last trading in the red, down 2.93% at Rs. 768 on the BSE.