Mahindra & Mahindra (M&M) on Thursday reported a net profit of Rs 1,798 crore for the December quarter, beating Street estimates. The quarterly net profit was up 27.5 percent on a year-on-year basis, according to a regulatory filing.

Its revenue for the October-December period increased 8.4 percent on year to Rs 15,239 crore.

Analysts in a CNBC-TV18 poll had estimated its net profit at Rs 1,136 crore and revenue at Rs 15,250 crore.

Revenue from the tractor segment declined 1.2 percent on a year-on-year basis. However, auto revenue increased 14.9 percent on year.

“We have seen improved performance across multiple businesses as reflected in our consolidated performance. Our Auto business has done well despite supply side challenges while our Farm business has shown market share increase despite a slowdown in the market,” said Anish Shah, Managing Director and CEO, M&M.

The auto major reported a 24.3 percent year-on-year drop in earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 1,806 crore. Its EBITDA margin came down to 11.8 percent in the third quarter of the current financial year, from 17 percent in the corresponding period a year ago.

The company said commodity inflation and the shortage of semiconductors is impacting its operating margin.

Analysts had predicted the company's EBITDA at Rs 1,841 crore and EBITDA margin at 12 percent.

M&M shares ended 1.5 percent higher at Rs 853.1 apiece on BSE after the earnings announcement.

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(Edited by : Sandeep Singh)

First Published:Feb 10, 2022 1:33 PM IST