Mahindra and Mahindra Limited recorded a 67% year-on-year jump in its first quarter of the financial  year 2018-19.

India’s multinational auto manufacturer Mahindra and Mahindra Limited (M&M) recorded a 67% year-on-year jump in its quarterly profit in the first quarter of the financial            year 2018-19.

According to a company release on Tuesday (7), its quarterly profit touched 9.74 billion GBP meeting its previous expectations. The company had reported profit of  5.83 billion GBP during the same period last year.

The total revenue for the quarter jumped 23 per cent to 104.99 billion GBP when compared to the last year’s quarterly revenue of 85.27 billion GBP. Operating profit margin of the company was at 15.8 per cent for quarter, up by 260 basis points over 13.8 per cent recorded during the same quarter last year.

In a Bombay Stock Exchange filing the company said, “Consumption, both rural and urban, remains healthy. A normal monsoon, with a satisfactory temporal and spatial distribution, combined with the recently approved higher Minimum Support Price (MSP) for kharif crops should help support rural consumption further,” stated the company.

“Improving capacity utilization and credit off-take too augur well for investment activity. While Reserve Bank of India’s (RBI) GDP growth forecast for 2018-19 has been retained at 7.4 per cent, growth is estimated to be more front-ended.

“Global growth backdrop has remained buoyant so far. However, the recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions. These could pose risks to global recovery and investments,” the company pointed out.