Mahindra and Mahindra Ltd’s (M&M’s) June quarter results show improving farm equipment sales on the back of a normal monsoon. Sure, auto sales rose 11%, but this did not meet the expectation on the Street. This was the saving grace for the company, given that the auto segment’s profitability contracted by a steep 240 basis points to a thin 7.8%. While this segment beat Street expectations, the auto segment dented overall performance, with some pain resulting from the expiry of excise duty benefits at its Haridwar unit. Benefits of higher volumes translated into a 120 basis point expansion in the segment’s profit margin to a solid 18.8%.

Source: Mint August 10, 2016 21:33 UTC