Mumbai, Oct. 25: Mahindra & Mahindra (M&M) today beat Street estimates by posting a 22.3 per cent growth in net profit at Rs 901.8 crore for the second quarter ended September 30 on the back of utility vehicle sales.
Net profit stood at Rs 737.4 crore in year-ago period.
Analysts had expected the utility vehicle and tractor maker to post a net profit of over Rs 800 crore.
The M&M scrip ended nearly 4 per cent higher on the stock exchanges in an otherwise dull market. On the BSE, the stock finished Rs 29.75 higher at Rs 857.55.
The strong performance came despite the slowdown and poor monsoon taking a toll on tractor sales.
M&M said the domestic tractor industry witnessed a 12 per cent fall in sales during the second quarter. The company sold 47,065 tractors against 54,585 units in the same period last year and exported 3,043 tractors.
However, the company’s passenger utility vehicle sales grew 32 per cent to 62,751 units. During the period, M&M launched the compact SUV Quanto.
According to M&M, bookings for 5,000 Quantos were made within the first three weeks of its launch. In the car segment, the company sold around 4,899 Veritos.
The better performance in utility vehicles led to the automotive segment posting higher revenues of Rs 7,149.84 crore compared with Rs 4,516.40 crore last year. Farm equipment revenues, however, came down to Rs 2,653.44 crore from Rs 2,823.04 crore on a standalone basis.
Striking a cautious yet optimistic note, M&M said though the current economic situation was challenging, a focus on product launches, process innovation and cost control should enable it to meet the challenges.
Kotak Mahindra Bank today reported a 16 per cent rise in net profit at Rs 502.17 crore for the July-September period against Rs 432.58 crore during the same period a year ago.
Total income rose to Rs 4,035.75 crore from Rs 2,740.84 crore a year ago.
Income from other sources increased to Rs 1,425.97 crore from Rs 711.48 crore.
Net interest margin stood at 4.7 per cent against 4.8 per cent a year ago.
Bajaj Electricals has posted around 8 per cent growth in net profit at Rs 26.92 crore in the quarter ended September against Rs 24.98 crore during the year-ago period.
Net sales grew 4.7 per cent to Rs 733.81 crore. Profit before taxes stood at Rs 32.29 crore, which included Rs 24.68 crore from the divestment of its stake in Bajaj Ventures.