Mahindra & Mahindra Stock Falls Despite 12% Growth in First Quarter Profit
Mahindra & Mahindra Ltd. reported strong profit growth in the June quarter aided by one-offs, but the stock dropped after margins contracted.
Net profit increased 12.4 percent to Rs 955.2 crore, from Rs 850.1 crore in the April-June quarter last year, according to the company's filing on the Bombay Stock Exchange. The profit performance surpassed the Rs 893.5 crore consensus of analysts tracked by Bloomberg.
However, the earnings included Rs 91 crore profit from the transfer of agri-business to a fully owned subsidiary, the company added. Other income jumped 31.2 percent to Rs 216.8 crore from dividend received from subsidiaries and joint ventures.
Revenue rose 14 percent to Rs 11,800 crore in the quarter.
Earnings before interest, tax, depreciation and amortisation grew 3.2 percent to Rs 311.7 crore. EBITDA margin, however, dropped 113 basis points to 10.76 percent, as employee costs and other expenses rose.
The management said the double digit growth in domestic sales of tractors and two wheelers in the June quarter signalled a recovery in rural demand. The management is also bullish about a pickup in industrial activity and private capital expenditure in the near-term.
Given the robust fall rainfall received thus far, and the Indian Meteorological Department's prediction of normal rains for the rest of the monsoon season, rural demand can be expected to gather further strength in the coming months, providing a much needed boost to industrial activity in the country.Mahindra & Mahindra's Press Release
The stock fell close to 2 percent to Rs 1,446 after the announcement of the June quarter earnings.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
