Mahindra & Mahindra clocks a standalone profit of ₹163 crore in Jan-March quarter on stronger sales of PVs and tractors

Mahindra & Mahindra clocks a standalone profit of ₹163 crore in Jan-March quarter on stronger sales of PVs and tractors
Home-grown auto major Mahindra & Mahindra on Friday reported a standalone profit-after-tax (PAT) of ₹163 crore for the fourth quarter ended March 31, 2021, on the back of robust sales of passenger vehicles and tractors.

The Mumbai-based company, along with its subsidiary in the automotive sector Mahindra Vehicular Manufacturers Ltd, had reported a net loss of ₹3,255 crore for the January-March quarter of 2019-20 fiscal.

On a consolidated basis, its PAT from continuing operations for the January-March period of 2021 stood at ₹1,635 crore, against a net loss of ₹588 crore in the year-ago quarter.

Its revenue on standalone basis rose to ₹13,338 crore during the period under review from ₹9,005 crore in the fourth quarter of FY20, M&M said in a statement.

For the entire 2020-21 fiscal, the company posted a standalone PAT of ₹923 crore, up 25 per cent as compared with ₹740 crore in the 2019-20.


Its standalone revenue during the last fiscal declined by 1 pc to ₹44,574 crore as against ₹44,866 crore in FY20.

The consolidated revenue for January-March 2021 from operations stood at ₹21,456 crore as against ₹16,315 crore in the corresponding period of the last fiscal.

For the entire 2020-21 fiscal, the company reported a consolidated PAT of ₹3,702 crore as compared with ₹2,713 crore in 2019-20.

Its consolidated revenue from operations stood at ₹74,278 crore for the financial year 2020-21, as against ₹75,382 crore in 2019-20.

The Mumbai-based automaker said overall demand for the company's passenger vehicle models remained robust in the fourth quarter of FY21.

However, the global shortage of semiconductors impacted the production and sales for the quarter, it added.

The company sold 1,06,333 units during the fourth quarter, up 18 per cent from 90,481 units in the fourth quarter of FY20. Total sales of PVs during the last fiscal however dropped by 26 per cent to 3,48,621 units, against 4,71,141 units in 2019-20.

The automotive sector continued its focus on cost optimisation and reduced its fixed expenses by over ₹900 crore over the last two years and hence keeping its margin resilience even under challenging times, M&M noted.

The company sold 93,044 tractors duing the fourth quarter of 2021, as compared with 58,817 units in January-March period of FY20.

In the entire last financial year, the company sold 3,51,431 tractors, up 18 per cent from 2,98,927 units in 2019-20.

"Our associates deserve all the credit for an outstanding performance in a tough year. Our primary focus has been "people first", keeping our associates and our communities safe. We have delivered our promise on capital allocation actions and have seen very positive results. We are now focused on growth... across our core businesses, growth gems and digital platforms," M&M Managing Director and CEO Anish Shah said.

The company's board recommended a dividend of ₹875 (175 per cent) per share of the face value of ₹5 each for FY21.

"The strong margins and turnaround of global subsidiaries in FES (farm equipment sector) along with a robust automotive demand momentum through the focused SUV strategy has set the ground for us to now accelerate to fly. New products and technologies, farm machinery opportunity and cost management sets us up for a bold, aggressive growth trajectory," M&M Executive Director Rajesh Jejurikar said.

The company noted that its operating cash generated for FY21 rose by 119 per cent to ₹10,022 crore driven by improved profitability and robust working capital management.

"Our journey towards our goals of streamlining capital allocation and delivering superior returns has begun well. We are delighted by the robust operating cash flow in a year which saw the impact of the pandemic as well as multiple supply-side challenges," M&M CFO Manoj Bhat said.

M&M shares were trading 2.21 per cent up at ₹846.90 apiece on the BSE.

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