Mahindra & Mahindra on Friday reported a consolidated net loss of ₹3,255 crore for the quarter ended on March 31. The revenue of the company declined 35% year-on-year to ₹9,005 crore during the quarter under review. The sales 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-19 situation, the company said in a release. The board also recommended a dividend of ₹2.35 per share.
PAT after exceptional item was primarily impacted due to write down of investment in Ssangyong and some other international subsidiaries. “As announced earlier Mahindra Board had decided not to infuse any fresh capital into Ssangyong and is re-examining the business outlook of other International subsidiaries, in view of the current environment, to decide on future capital allocation,” the company said.
The automotive industry (excluding 2W) posted a decline of 28.6% in the fourth quarter of FY2020 due a COVID-19 lockdown in the country. However, Mahindra & Mahindra managed to increase its market share in the domestic tractor market to 39.1% in Q4 FY2020, a growth of 3.7% over the corresponding quarter last year.
Mahindra & Mahindra reported a standalone loss of ₹2,510 crore for Q4FY20 on account of booking impairment provision for certain long-term investment to the tune of ₹2,780 crore during the period. M&M’s standalone net profit was at ₹841 crore in the year-ago period.
“While the overall services and manufacturing sectors are likely to see a slower recovery, the agriculture/farm equipment sector will be relatively less impacted,” the company mentioned about the outlook.
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 F2021, Mahindra & Mahindra said.
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