7th Feb 2012,Tuesda
Mahindra and Mahindra Ltd, India's biggest utility vehicle maker, reported a bigger-than-expected 9.9 per cent fall in quarterly profit as rising commodity costs squeezed margins
Indian automakers have struggled over the past six months as rising costs dent margins and high interest rates curb once-soaring sales growth in Asia's third-largest economy
"Given how material costs have moved during the quarter, and we are not able to pass these on 100 per cent ... our profitability will come down," said Pawan Goenka, president of Mahindra's automotive and farm equipment sectors, referring to the company's fiscal third-quarter ended December.
Mahindra, one of the world's top three tractor manufacturers, said on Tuesday net profit fell to Rs 6.62 billion ($135 million) for the quarter from Rs 7.35 billion a year earlier even as revenue rose 37 per cent to Rs 83.27 billion.
Shares in Mahindra, valued at about $8.6 billion, fell 2.8 per cent to Rs 690.20 by 0936 GMT in a Mumbai market that was down 0.57 per cent.
Mahindra and Mahindra Ltd, India's biggest utility vehicle maker, reported a bigger-than-expected 9.9 per cent fall in quarterly profit as rising commodity costs squeezed margins
Indian automakers have struggled over the past six months as rising costs dent margins and high interest rates curb once-soaring sales growth in Asia's third-largest economy
"Given how material costs have moved during the quarter, and we are not able to pass these on 100 per cent ... our profitability will come down," said Pawan Goenka, president of Mahindra's automotive and farm equipment sectors, referring to the company's fiscal third-quarter ended December.
Mahindra, one of the world's top three tractor manufacturers, said on Tuesday net profit fell to Rs 6.62 billion ($135 million) for the quarter from Rs 7.35 billion a year earlier even as revenue rose 37 per cent to Rs 83.27 billion.
Shares in Mahindra, valued at about $8.6 billion, fell 2.8 per cent to Rs 690.20 by 0936 GMT in a Mumbai market that was down 0.57 per cent.
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