Mahindra and Mahindra net profit plummets 99 percent

Sat, Jan 31 03:37 PM

Mumbai, Jan 31 (IANS) Auto major Mahindra and Mahindra (M&M) Saturday said its stand-alone net profit dipped over 99 percent to Rs.11.96 million (Rs.1.19 crore/$242,757) for the quarter ended Dec 31, from Rs.4.05 billion in the same period the previous year.

The company's total income decreased to Rs.25.62 billion for the third quarter from Rs.29.8 billion in the corresponding period last year, M&M said in a statement.

The company blamed exchange losses to the tune of Rs.1.82 billion, high inflation of earlier months and lukewarm consumer sentiment in the wake of global financial turbulence for the bad performance.

During the nine-month period ended Dec 31, M&M's net profits touched Rs.5.8 billion as against Rs.6.52 billion a year ago.

Sale of logistics business of the company resulted in a profit of Rs.79.4 million, the statement added.