Mahindra & Mahindra Q4 Financial Results Shows 5% Growth In Revenue And 16% Drop In Profit
The Board of Directors of Mahindra & Mahindra Limited has announced the financial results of the Company for the quarter ended 31st March 2019 and the audited results for the year ended 31st March 2019 and for the consolidated Mahindra Group.
Q4 F2019 – M&M + MVML** Results
Rs. crores | ||||
Q4 F2019 | Q4 F2018 | Growth % YoY | ||
Revenue and Other Income | 14,055 | 13,355 | 5% | |
Profit from ordinary activities Before Tax (before EI) | 1,515 | 1,672 | -9% | |
Profit from ordinary activities After Tax (before EI) | 1,074 | 1,107 | -3% | |
Profit from ordinary activities After Tax (after EI) | 969 | 1,155 | -16% | |
Operating margin (OPM) | 13.5% | 15.1% | ||
Vehicles sold (Nos) | 1,63,937 | 1,56,453 | 5% | |
Tractors sold (Nos) | 56,903 | 66,885 | -15% | |
Exports (vehicles and tractors) (Nos) | 13,541 | 12,459 | 9% | |
The muted demand in rural India on account of poor distribution of SW monsoon, a deficit NE monsoon and weak agricultural incomes due to poor price realization, stress in the NBFC sector leading to tight credit conditions along with low demand in urban India and the overall sluggishness in the economy led to a fall in both the tractor and automotive industry during Q4 of F2019.
The domestic tractor industry witnessed a fall of 8.4% during the quarter and the Company sold 56,903 tractors in the domestic market and exported 3,341 tractors, a decline of 14.9% and 10.9% respectively over the corresponding quarter of the previous year. After seven successive quarters of growth, the domestic automotive industry witnessed a reversal in Q4 F2019 mainly due to negative growth of 2% and 5.9% in the Passenger Vehicle (PV) & MHCV goods industry respectively. Despite the above mentioned head winds impacting the PV segment the Company successfully weathered these challenges and sold 77,607 vehicles during Q4 F2019 recording a growth of 7% over the corresponding quarter of the previous year. The launch of the cheetah inspired and stylish XUV300 having best-in-segment safety features, first-in-segment hi-tech features and class-defining interiors helped the Company grow its Utility Vehicle sales by 6.8% in Q4 F2019 with a market share of 27.9%. In April 2019, the XUV300 became the second-highest selling sub-4 metre SUV brand in India. The Company now has three strong new products which will see full year impact on volumes in F-2020. The Company also exported 10,200 vehicles during the current quarter, registering a growth of 17.1% over the corresponding quarter previous year.
