Home >Companies >News >Mahindra & Mahindra reports 2,510 crore loss in Q4 FY20
The logo of Mahindra and Mahindra is seen at a showroom in Mumbai. (Photo: Reuters)
The logo of Mahindra and Mahindra is seen at a showroom in Mumbai. (Photo: Reuters)

Mahindra & Mahindra reports 2,510 crore loss in Q4 FY20

  • The farm equipment segment posted a net profit of 549 crore, up 6% YoY
  • For fiscal 2020, revenues were at 45,488 crore compared with 53,614 crore in FY19

MUMBAI: India’s largest tractor manufacturer and a leading maker of utility vehicles, Mahindra & Mahindra Ltd (M&M), reported a standalone loss of 2,510 crore for the January-March quarter compared to a net profit of 841 crore in the year-ago period.

The loss in the last quarter was on account of provisioning for impairment of certain long-term investment worth 2,780 crore.

Revenue from operations were at 9,144 crore, down 35% year-on-year.

Results were lower than the estimates of 16 analysts polled by Bloomberg who had projected revenue at 11,799 and a net profit of 462 crore.

The farm equipment segment posted a net profit of 549 crore, up 6% YoY, while the automotive business fetched a profit of 165 crore, down 77% YoY.

For fiscal 2020, revenues were at 45,488 crore compared with 53,614 crore in FY19.

M&M’s consolidated net loss was at 1,335 crore for the March quarter against net profit of 693 crore. Consolidated revenue from operations was at 20,182 crore, down 26% YoY.

"The net impact of the impairment losses and gains on disposal of /changes in ownership interest amounting to 1,782.55 crores for the quarter ended 31 March, 2020, has been recognised as exceptional items in the consolidated statement of profit and loss," the company said in a statement.

According to the Society of Indian Automobile Manufacturers data, M&M sold 34,113 passenger vehicles during the March quarter, down 56% from 77,607 units sold in the year-ago period. Commercial vehicle sales fell 40% on year to 41,028 units during the period.

The company sold 59,290 tractors during the March quarter, down only 2.6% on year.

Domestic vehicle sales have been declining due to a downturn in the economy which was aggravated by the outbreak of covid-19 fand the ensuing lockdowns first in China and then in India.

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