Mahindra & Mahindra Q4 Net Profits: Utility maker M & M on Friday posted a 38.61% decline in standalone net profit to Rs 550.56 crore for the fourth quarter ended March 31, hurt by a slowdown in automotive and farm equipment segments.
Utility maker Mahindra & Mahindra on Friday posted a 38.61% decline in standalone net profit to Rs 550.56 crore for the fourth quarter ended March 31, hurt by a slowdown in automotive and farm equipment segments.
This is the steepest fall since December 2008 when the company reported an 89% drop in quarterly profit. The profit of Rs 550.56 crore is also the lowest since end-December 2009.
Net sales during the period stood at Rs 9,411.52 crore, down 13.16%.
In the fourth quarter, M&M along with its wholly-owned arm Mahindra Vehicle Manufacturers (MVML) sold 57,027 utility vehicles, while tractor sales stood at 34,682 units, the company said. For the full fiscal ended March 31, 2015, the company’s consolidated net profit stood at Rs 3,137.47 crore, down 32.77%. Net sales on a consolidated basis in 2014-15 were at Rs 70,797.87 crore, down 2.69%.
The board of directors of the company has recommended a dividend of Rs 12 per share of face value of Rs 5, which will absorb a sum of Rs 846.89 crore, inclusive of tax, it added.
“The prevailing economic conditions combined with subdued consumer interest affected performance of companies in the group,” M&M said. On the outlook, it said: “With recovery still tentative in the developed work and growth slowing across major emerging markets, external demand remained weak and uninspiring through the year.
“At the same time, poor monsoons and unseasonal winter rains combined with moderating food prices to depress farm incomes with inevitable negative impacts on domestic consumption demand”.