Mahindra and Mahindra records Rs 1,331 crore profit in second quarter

Utility major Mahindra and Mahindra has registered a profit of RS 1,331.57 crore in September quarter, a 24.79 per cent increase from growth recorded in the last year's quarter. Last year, M&M's net profit was Rs 1,067 crore. The total revenue from this quarter's operations was Rs 12,182.07 crore, while in the same period last fiscal, the company recorded a total revenue of Rs 11,446.14 crore.

The firm said in a BSE filing that the figures are not comparable due to GST implementation from July. Its board of directors, during a meeting today, recommended the issuance of bonus shares in the ratio of 1:1, which is one bonus share of Rs 5 each for every one fully paid-up share of Rs 5 each.

The company said it would seek the shareholders' approval through a postal ballot. Reports suggest the company sold 1,29,754 units of vehicles, besides selling 76,984 units of tractors and total exports of 11,755 units.

The company, however, said the economic growth has remained sluggish in recent quarters. "Growth momentum is likely to witness a cyclical bounceback once the effects of some recent transient factors fade away and the economy adjusts to the GST implementation," it said. The company's stock was trading 2.31 per cent up at Rs 1,393 on the BSE today.