Share price of Mahindra & Mahindra (M&M) fell the most on Sensex, Nifty today losing nearly 6% after the automaker posted a 73% decline in its net profit (YoY).
Net profit in last quarter stood at Rs 380 crore due to exceptional loss and one-off items worth Rs 554 crore. This was in contrast to the net profit of Rs 1,396 crore in the year-ago quarter.
Following the result update, share price of Mahindra & Mahindra touched an intraday low of Rs 536.45, falling 5.69% against its previous close of Rs 568.80 on BSE. Mahindra & Mahindra stock has fallen 7.75% in the last 3 sessions. The stock has lost 3% in one week, 0.85% in one month and 20 % in a year.
Mahindra & Mahindra stock price trades higher than 50-day moving averages but lower than 5, 20, 100 and 200-day moving averages. The stock fell in line with the broader market index Sensex that dropped over 300 points on Monday tracking losses in global equities.
Volume-wise, 0.85 lakh and 33.8 lakh shares are changing hands on BSE and NSE counters today. Market depth data of Mahindra & Mahindra stock suggests 55% participants offering against 45% bidding on the stock. Market capitalisation of the large-cap stock currently stands at Rs 68,407.00 crore.
"The Q3 FY20 results include a net loss on account of exceptional and one-off items of Rs 554 crore, as compared to a net gain on account of exceptional and one-off items of Rs 519 crores in Q3 FY19," M&M said in a filing to the Bombay Stock Exchange.
Revenue for the quarter fell 6% to Rs 12,120 crore compared with Rs 12,893 crore in the same quarter last year. Operating profit margin for the quarter rose to 14.8% from 13.2% YoY.
M&M said both Indian auto and tractor industries have shown some signs of a trend reversal in December quarter and seen a moderation in the double-digit de-growth registered in first two-quarters of FY20.
"Good monsoon, 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 de-growth," M&M said in the filing.
In another update, the company announced Anand Mahindra has acceded to the request of the board to continue as executive chairman till November 11, 2021, instead of April 1, 2020, as announced earlier.