M&M profit rises but lags estimates at Rs 863 crore

Mahindra & Mahindra, India's biggest utility vehicle manufacturer, posted a 26 percent rise in profit for the three months to end-December but lagged street estimates, as a slide in operating margin offset strong SUV sales growth.

Shares in the company fell as much as 1.4 percent after the results. They were down 0.4 percent before the results were released.

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Mahindra, also the world's largest tractor company by sales volume, said profit for the fiscal third quarter was Rs 836 crore, against Rs 662 crore a year earlier. Net sales increased 29 percent to Rs 10643 crore.

Analysts, on average, expected profit of Rs 862 crore, according to data from Thomson Reuters Starmine.

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Mahindra's passenger vehicle sales rose an annual 36 percent during the quarter, as its domestic tractor sales inched up 3.9 percent.

Reuters