Mahindra
& Mahindra, India's largest multinational automobile company,
maker, has showed a 7.25 per-cent decline in total profit to Rs 831
cr. for the quarter to June, compared to Rs 896cr in the year-ago
time, faring better at the time than analysts apprehended. Share
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Net
sales of company decreased 4 per-cent to Rs 9,437 cr.Moreover, EBIDTA
margins sinked marginally by 12 basis pts or 0.12% point to 14.33%.
M&M
said its adjusted margin of 14.3 per-cent, as per adjusted earnings,
was the largest in the past nine quarters. Benign material cost and
improved system cost helped the company during the period, said VS
Parthasarthy of Mahindra Group.We have been talking for a long time
about our focus on both auto and farm equipment, to focus on margin
of safety, despite volume being under pressure and the numbers of Q1
FY16 clearly reflect that. When times are bad, it cushions us, and
when times are good, it only benefits us.
The
company stated that, its tractor business continued to lose steam as
rural economy and farm business remained under pressure.
The
decline is probably to continue in the upcoming quarter, it said,
before the industry pulls backward into the positive territory in the
2nd-half of the fiscal. Despite a sharp 18 per-cent decline in
tractor sales to 59,150 units at the time of first 3 months of the
fiscal, M&M said the tractor industry could finish the year with
5-6% volume growth.
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