Mahindra & Mahindra (M&M) on Wednesday reported a 19.85 per cent decline in its standalone profit after tax (PAT) at Rs 848.81 crore for the fourth quarter of 2018-19, as against a profit of Rs 1,059.09 crore in the corresponding period of 2017-18.
Revenue from operations rose to Rs 14,035.16 crore in the quarter ended March 31, 2019, as against Rs 13,307.88 crore in the fourth quarter of FY18, M&M said. For FY19, the company posted a PAT of Rs 4,796.04 crore, up 10.1 per cent, as against Rs 4,356.01 crore in 2017-18. Revenue from operations during the previous fiscal increased to Rs 53,614 crore, against Rs 49,444.99 crore in 2017-18.
The firm said total vehicle sales in Q4 rose to 1,63,937 units, as against 1,56,453 units in the year-ago quarter, a growth of 5 per cent. Passenger vehicle (PV) sales was at 77,607 units, up 7 per cent over the year-ago quarter. The board of M&M recommended a dividend of Rs 8.50 per share of a face value of Rs 5 each share (170 per cent). On Wednesday, shares of the company ended 0.25 per cent up at Rs 672.25 apiece on the BSE.
“Muted demand in rural India on account of poor distribution of monsoon and weak agricultural incomes due to poor price realisation, stress in NBFC sector leading to tight credit conditions along with low demand in urban India and the overall sluggishness in the economy led to a fall in both the tractor and automotive industry during Q4 of FY2019,” M&M said.
The domestic tractor industry witnessed a fall of 8.4 per cent during March quarter and the firm sold 56,903 tractors in domestic market and exported 3,341 tractors, a decline of 14.9 per cent and 10.9 per cent respectively over the corresponding quarter of the previous year. After seven quarters of growth, the domestic automotive industry witnessed a reversal in Q4 of FY2019, mainly due to negative growth of 2 per cent and 5.9 per cent in the PV and MHCV goods industry, respectively.