Mumbai (Maharashtra) [India], Aug 7 (ANI): Mahindra & Mahindra on Friday reported 97 per cent dip fall in its first-quarter profit after tax at Rs 68 crore as against Rs 2,260 crore in Q1 FY20.
The revenues dropped by 56 per cent to Rs 5,589 crore in Q1 FY21 from Rs 12,805 crore in Q1 FY20. The operating margin too slid from 14 per cent to 10.3 per cent in the same period.
The number of vehicles sold crashed by 78 per cent to 27,565 units in Q1 FY21. Tractor sales came down by 22 per cent to 64,140 units from 82,013 units while exports fell by 72 per cent to 3,109 units (vehicles and tractors combined) as compared to 10,923 units in Q1 FY20.
A full summation of gross revenue and other income of all the group companies taken together for the quarter ended June 30 was Rs 26,452 crore.
M&M said the Indian auto industry (excluding two-wheelers) reported a de-growth of 81.5 per cent 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," it said.
M&M said the unprecedented shock induced by COVID-19 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."
The company continues its strong focus on cost management to improve its financial performance in these testing times, it said. (ANI)