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Tuesday, August 04, 2020

Mahindra & Mahindra reports net loss of Rs 3,255 crore in Q4

Revenue from operations declined to Rs 9,004.72 crore during the fourth quarter compared with Rs 13,807.88 crore in the same period of corresponding fiscal, M&M said in a regulatory filing.

By: PTI | New Delhi | Published: June 12, 2020 4:37:40 pm
In a statement, M&M said Pawan Kumar Goenka has been re-appointed as the managing director with additional responsibilities of chief executive officer (CEO) for a year, effective April 1, 2020.

Mahindra & Mahindra (M&M) on Friday reported a consolidated net loss of Rs 3,255.02 crore for the quarter ended on March 31, 2020.

The company along with Mahindra Vehicle Manufacturers Ltd (MVML) had posted a net profit of Rs 969.25 crore for the January-March period of 2018-19.

Revenue from operations declined to Rs 9,004.72 crore during the fourth quarter compared with Rs 13,807.88 crore in the same period of corresponding fiscal, M&M said in a regulatory filing.

The company said it sold 86,351 vehicles in the fourth quarter, down 47 per cent from 1,63,937 units sales in the fourth quarter of 2018-19.

For 2019-20 fiscal, the company reported a net profit of Rs 739.71 crore against Rs 5,401.18 crore in 2018-19.

Net revenue from operations for the fiscal stood at Rs 44,865.52 crore as against Rs 52,848.21 crore in 2018-19.

On a standalone basis, the auto major reported a net loss of Rs 2,502 crore for the fourth quarter as compared with a net profit of Rs 849 crore in the January-March period of 2018-19.

The standalone net profit for 2019-20 fiscal stood at Rs 1,331 crore as against Rs 4,796 crore in 2018-19.

“The results were affected due to the lower industry volumes in both automotive and tractor segments, transition to BS VI and the abrupt lockdown due to the COVID situation,” M&M said.

On the outlook, the company said that with easing of restrictions there will be a ramp up in production, supply chain and
distribution from June onwards, which will aid economic activity.

While the overall services and manufacturing sectors are likely to see a slower recovery, the agriculture/farm equipment sector will be relatively less impacted, aided by several positive factors such as record Rabi production, higher government procurement, timely announcement of higher MSPs and outlook of a normal monsoon, it added.

“One can expect a quicker recovery in rural India, as is evident from tractor sales of the company in the month of May. The urban segment may take longer to come back to normalcy,” M&M said.

Having said that, while the outlook is heavily contingent upon the intensity, duration and spread of the pandemic, a smooth normalisation and efficacy of policy measures will be the key to any recovery in the current fiscal, it added.

The company’s board, which met on Friday, recommended a dividend of Rs 2.35 (47 per cent) per share of face value Rs 5 each for 2019-20 fiscal.

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