Mahindra's passenger vehicles see increased demands, profit soars
Indian vehicle manufacturer Mahindra and Mahindra has recorded an overall profit of ₹ ₹3,702 crore in the last financial year that ended in March this year. The last quarter saw a profit-after-tax (PAT) of ₹48 crore after a dismal show during the same period last year.
The surge in profit came as demand for Mahindra's passenger vehicles and tractors picked up in the last few months. Mahindra witnessed a strong recovery in demand for passenger vehicles in the first three months of the year after lockdowns eased and more people opted for personal cars to avoid public transport due to the pandemic.
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Anish Shah, Managing Director and CEO at Mahindra and Mahindra, said, "Our associates deserve all the credit for an outstanding performance in a tough year. Our primary focus has been 'people first', keeping our associates and our communities safe. We have delivered our promise on capital allocation actions and have seen very positive results. We are now focused on growth... across our core businesses, growth gems and digital platforms."
Mahindra had actually recorded a loss of ₹2,502 crore between January and March last year due to poor performance by its former South Korean unit SsangYong Motor.
On a consolidated basis, Mahindra booked a one-time loss of more than ₹485 crore after it ended its ownership of SsangYong last year. Since then, Mahindra has been carefully reviewing its businesses to retain only those which promise to be profitable.
The company's board recommended a dividend of ₹875 (175 per cent) per share of the face value of ₹5 each for FY21.