Shares of Mahindra and Mahindra declined over 6 percent on Monday after the company reported a 73 percent fall in net profit at Rs 380 crore in Q3 versus a net profit of Rs 1,396 crore in the year-ago quarter.

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The stock fell as much as 6.2 percent to Rs 533.45 per share on BSE. At 1:10 pm, the stock was trading 6 percent lower at Rs 533 as compared to a 0.5 percent or 214 points fall in BSE Sensex at 40,927.

Revenue from operations stood at Rs 12,120 crore during the quarter compared with Rs 12,892.5 crore a year ago, a decline of 6 percent. The operating profit margin rose to 14.8 percent from 13.2 percent in the same quarter last year.

Good monsoons, the festive season demand, improved liquidity conditions, new launches, especially in the Utility Vehicle (UV) segment and special schemes offered by OEMs for the auto industry were the key reasons for this moderation in degrowth, it added.

In Q3, both the company's domestic tractor sales and the domestic tractor industry registered a 6 percent decline as compared to the same quarter last year.

The management said the unseasonal rains in the month of October 2019 did some damage to the Kharif crop, but the sentiment in the agriculture and rural economy is fairly upbeat with good sowing of Rabi crops supported by very good water reservoir levels and government announcement for thrust on infra projects.