MUMBAI :
Mahindra and Mahindra Ltd (M&M), India’s largest tractor manufacturer, reported 94% decline in its consolidated profit at ₹54.64 crore for June quarter 2020, adversely impacted by the coronavirus pandemic.
The company had posted a profit after tax of ₹894.11 crore in the same period last fiscal, Mahindra and Mahindra said in a regulatory filing.
Revenue from operations during the June quarter stood at ₹16,321.34 crore as against ₹26,041.02 crore in the year-ago period, down 37%, the company added.
The automotive segment posted a revenue of ₹6,508.6 crore in the first quarter, down from ₹13,547.84 crore in the same period a year ago, the company said.
The number of vehicles sold crashed by 78% to 27,565 units in Q1 FY21. Tractor sales came down by 22% to 64,140 units from 82,013 units while exports fell by 72% to 3,109 units (vehicles and tractors combined) as compared to 10,923 units in Q1 FY20 , news agency ANI reported.
The agriculture equipment segment’s revenue was ₹4,906.92 crore as against ₹6,077.9 crore in the same quarter last fiscal.
Revenue from financial services stood at ₹3,031.69 crore as compared to ₹2,822.03 crore in first quarter last year, the company added.
Hospitality segment recorded a revenue of ₹294.26 crore as compared to ₹612.49 crore in the same period a year ago, the company added.
The company said said its standalone profit after tax for the first quarter was at ₹112.1 crore as against ₹2,313.82 crore. Standalone revenue from operations for the quarter was at ₹5,602.18 crore as compared to ₹12,922.72 crore in the year-ago period.
Mahindra said the Indian auto industry (excluding two-wheelers) reported a de-growth of 81.5% over the previous year. After the first-ever zero sales in April, the industry is finding its way back.
“The company’s key brands which have a strong rural bias saw good demand in June. However, low pipeline inventory coupled with the challenges of ramping up production due to supply chain issues affected the company’s sales,” the company said.
Mahindra said the unprecedented shock induced by coronavirus pandemic is the worst that India has seen in the post-Independence period. This is the first instance of a simultaneous demand and supply shock — making it different from the previous crisis.
“A combination of lower incomes and heightened uncertainty is expected to drag consumer spending and business investment in FY21. It is now a foregone conclusion that the economy is set to contract during the year — the first time in 41 years.”
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