Mahindra net profit down 35 percentOctober 29th, 2008 - 6:27 pm ICT by IANS
Mumbai, Oct 29 (IANS) Car and farm equipment maker Mahindra and Mahindra (M&M) posted a net profit of Rs.1.85 billion (about $41.2 million) in the second quarter this fiscal, down from Rs.2.85 billion (about $65.5 million) in the same quarter last fiscal, the company said Wednesday.In a regulatory statement, the company attributed exchange rate fluctuations of the weakening rupee to the 35 percent drop in its quarterly net.
“The lower profits are mainly on account of an exchange loss of Rs.117.8 crores (Rs.77.8 crores net of tax) suffered by the company due to Rupee depreciation,” the statement said.
The carmaker’s gross revenue for the quarter stood at Rs.36.9 billion (about $821.1 million) - 14.1 percent above last year’s Rs.32.4 billion (about $720 million).
However, the company’s scrip went up 8.25 percent on the Bombay Stock Exchange, closing at Rs.302.50 up from its last closing of 279.45.