Mahindra & Mahindra (M&M) saw its standalone net profit dropping almost 20 per cent for the fourth quarter ended March 31, 2019, as the homegrown auto company was hit by the slowdown in the economy.
M&M posted a standalone net profit of Rs 849 crore compared with Rs 1,059 crore in the same period of the previous year.
Total revenue came in at Rs 14,272 crore compared with Rs 13,479 crore in the year ago period.
For the entire fiscal, the company posted a profit after tax of Rs 4,796 crore, a rise of over 10 per cent against Rs 4,356 crore in 2017-18.
M&M said tractor sales fell because of the inadequacy of the south west monsoon and a deficit of the north east monsoon: which impacted demand. Poor price realisation from farm items also hit agricultural income, which hit tractor sale. The NBFC crisis led to a credit squeeze that hit vehicle sales.
The company said the domestic tractor industry witnessed a a drop in sales of 8.4 per cent in the fourth quarter.
Mahindra sold 56.903 tractors in the country, a decline of 14.9 per cent and exported 3,341 tractors, a fall in sales of 10.9 per cent.
M&M considered the return of Narendra Modi as a positive. A new government coming back with a decisive mandate signals a period of political stability, continuity in governance and consistency in policy decisions.
In passenger vehicles, M&M sold 77,607 units in January to March, recording a 7 per cent growth.
At its board meeting on Wednesday, the directors recommended a dividend of Rs 8.50 per share. Shares of the company on Wednesday ended 0.25 per cent higher at Rs 672.25 at the BSE.
Strong PFC show
State-owned Power Finance Corporation (PFC) on Wednesday reported an over two-fold rise in its standalone net profit at Rs 2,117.56 crore for the March 2019 quarter, mainly on the back of reduction in cost of funds and retiring of high cost loans.
The company had reported a net profit of Rs 796.35 crore in the corresponding quarter of the previous fiscal.
Its total standalone income for the January-March period increased to Rs 7,702.64 crore from Rs 6,254.96 crore a year-ago.
