Home > Auto > News > Mahindra reports net loss of 3,255 crore in Q4

Mahindra & Mahindra (M&M) on Friday reported a consolidated net loss of 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 969.25 crore for the January-March period of 2018-19.

Revenue from operations declined to 9,004.72 crore during the fourth quarter compared with 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 sold in the fourth quarter of 2018-19.

(Also read: Maruti Suzuki's Q4 profits slide 28% owing to low demand)

For 2019-20 fiscal, the company reported a net profit of 739.71 crore against 5,401.18 crore in 2018-19. Net revenue from operations for the fiscal stood at 44,865.52 crore as against 52,848.21 crore in 2018-19.

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

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

(Also read: Bajaj Auto records net profit of 1,354 crore in Q4, a drop of 4 per cent)

Mahindra has said that with easing of restrictions there will be a ramp up in production, supply chain and distribution from June onwards. (File photo of Scorpio)
Mahindra has said that with easing of restrictions there will be a ramp up in production, supply chain and distribution from June onwards. (File photo of Scorpio)

"The results were affected due to the lower industry volumes in both automotive and tractor segments, transition to BS 6 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.

(Also read: Setback for Mahindra as Fiat Chrysler wins case over 'Jeep Wrangler copy' Roxor)

"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 2.35 (47 per cent) per share of face value 5 each for 2019-20 fiscal.

This story has been published from a wire agency feed without modifications to the text.

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