Mahindra reports net loss of ₹3,255 crore in Q42 min read . Updated: 12 Jun 2020, 03:12 PM IST
Mahindra and Mahindra has said it sold 86,351 vehicles in the fourth quarter, down 47% from 1,63,937 units sold in the fourth quarter of 2018-19.
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.
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.
"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.
"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.