India’s third-largest auto maker reported a consolidated net loss of ₹3,255 crore between January and March 2020 compared to a profit of ₹840 crore a year earlier.
If the one-time impact from Ssangyong and other global subsidiaries is taken out, the bottomline would have shown a profit after tax of ₹323 crore.
The stock gained nearly 8% in trade as M&M’s performance far exceeded the estimates, as well as those of its peers like Maruti and Tata Motors.
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One of India’s largest automakers Mahindra & Mahindra reported a consolidated net loss of ₹3,255 crore between January and March 2020 compared to the same quarter last year. But it was largely due to a one-time charge for global subsidiaries like Ssangyong.
“The Company has recognised a loss of ₹2,780.47 crore as 'Exceptional items' on account of impairment provision for certain long-term investment,” the statement said.
The profit after tax, before these exceptional items, stood at ₹323 crore, leading the market to cheer— the stock ended the day up over 7.5% — and the board declared a dividend of ₹2.35 per share of the face value of ₹5 each.
BI india
The company’s total revenue was down 35% year-on-year to ₹9,005 crore. The profit was still the worst in at least five quarters.
BI India
Better than peers
The Mahindra group company had the benefit of catering to the farm sector at a time when the coronavirus lockdown had brought the urban demand for cars— particularly the more expensive SUVs that M&M specialises in — to a standstill. The company said the timely relaxation of the lockdown for the agricultural sector helped the company to ensure the gradual recovery of tractor demand during May.
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And that’s a reason why it has also been the better of the country’s auto stocks this year.
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