Mahindra & Mahindra Limited (M&M) reported a decline of 35 per cent in its net profit for the quarter ended September 30, 2008. Its net profit was Rs 285.9 crore in the same period last year. Now, it stands at Rs 185.7 crore registering 35 per cent decline.

M&M reported an exchange loss of Rs 117.8 crore including a notional loss of Rs 96.7 crore. These losses were suffered following revaluation of the company’s net foreign currency borrowings. Its gross revenue for the quarter ended September 30, 2008 registered a growth of 14.1% and stands at Rs 3,695.2 crore. It was Rs 3,239.5 crore during the corresponding period last year.

The company said in a press release that its margin is affected for the quarter following global meltdown, rise of input cost of materials and considerable depreciation of Indian currency as compared to dollar. Tight monetary policy and liquidity problem also contributed in the low operating margins and net profit. The company assured that it would pay special attention toward cost controls, process efficiencies and product innovations for customer satisfaction.

The shares of Automobile giant gained 8.25% on the Bombay Stock Exchange (BSE) on Wednesday and closed at Rs 302.50.