By Malvika Gurung
Investing.com -- The homegrown automaker Mahindra & Mahindra (NS: MAHM ) Ltd has reported a jump of 214% in net profit on a YoY basis, recorded at Rs 1,929 crore for the September ending quarter, on Tuesday.
Following the automaker’s quarterly earnings result, M&M’s stock grew and closed at Rs 904, up 5.2% on Tuesday.
The net profit has jumped nearly three times on a YoY basis, largely due to an asset impairment charge of more than Rs 1,400 crore taken by M&M in the same quarter last year. The automaker has taken the asset impairment charge of Rs 255 crore this quarter.
The company’s revenue from operations has grown 14.7% YoY to Rs 13,305 crore, exceeding the Street’s estimate of Rs 12,429 crore.
The Mumbai-based automaker has stated that the global shortage of semiconductors chips has impacted the production and sales of the company while rising commodity prices have impacted the margins of the auto and farm businesses.
In the auto sector, the company has recorded a 9% YoY increase in sales figure of 99,334 vehicles for the September quarter, while tractor sales have declined 5% to Rs 88,920 crore.
With the improved availability of semiconductor chips, the automaker aims to keep up with its volume growth momentum in the current quarter.
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