Automobile-maker Mahindra & Mahindra on Friday reported a 14.13 percent drop in its net profit to Rs 807.99 crore for the December quarter which ended on Dec. 31, 2015. The fall was due to weak sales of its tractor segment.
During the same time in the previous quarter, the company had posted a net profit of Rs 942.14 crore.
Its net sales during Q3 clocked Rs 10,900.93 crore against Rs 9,310.41 crore during the corresponding period a year ago, which was up 17.1 percent, the company said in a regulatory filing with the Bombay Stock Exchange.
The company sold around 58,600 utility vehicles and 59,883 tractor units in the domestic market during the quarter under review, Press Trust of India reports.
"Overall volumes grew 12 percent year on year led by the automotive segment which grew 15 percent year on year led by new launches in the utility vehicle segment and recovery in LCV industry. Tractor volumes continued to remain sluggish, reporting 5 percent growth during the quarter," said Bharat Gianani, Sr Research Analyst –Automobile at Angel Broking in his note.
The company said domestic consumer demand is likely to gain strength in the coming years.
The Mahindra stock closed at Rs 1,164.80 on Friday, up 3.77 percent from its previous close.