Mahindra and Mahindra standalone net profit declines 20% at Rs 776 crore
The impact of the BS-III standard and the transition to the goods and services tax, Mahindra and Mahindra Friday reached analysts’ estimates to show a 20% drop in their autonomous net benefits to Rs 766 crore in the month of Between April and June.
The net profit impacted the amount of Rs 91 million rupees during the quarter due to a provision of Rs 144 million rupees made by the company to support the distributor in relation to the assets of the grantees financed.
“The lack of input credit for certain taxes paid, and the fact that tractors were exempt from excise duty under the previous scheme, the company should ensure minimal impact to customers,” the company said in a statement. Net sales during the period increased slightly by approximately 5% to 11,575.71 crore, while operating margins remained under pressure.
Said EBITDA (earnings before interest, depreciation and tax amortization) of Rs 266.56 crore, almost 2%, while the EBITDA margin contracted 78 basis points to 10.94%.
Speaking to reporters on the conference results, Pawan Goenka, CEO of M & M said: “It was a full quarter of events.
It began with the ban on BS III dropped as a bomb for the automotive industry and was followed by the transition to the GST. However, the industry has achieved these disturbances. ”
The company has a moderate increase in volume of domestic vehicles which has increased by 1.2% for a total of 1.12 lakh, which was made by a product segment increase smart CVL to 43,009 vehicles.
VS Parathasarathy, CFO, M & M said: “The LCV segment of the company grew 20.7% in the first quarter, but it was detrimental in most other segments, particularly in the commercial vehicle (UV) sector. Volumes in the space of agricultural equipment increased by 13.5%, better than the industry.
This has allowed us to reach a market share of 45.8% in the segment, which is the highest proportion of H & M in a single quarter. “With the exception of LCV, all other categories of vehicles experienced a decrease in volume in the quarter.
The biggest drop was recorded in vans and passenger vehicle volumes, which fell by almost 22% to 2,703 units, while commercial vehicle (UV) was reduced by more than 5% to 53 082 units.
However, Goenka said the company is striving to transform its UV activity. “We strive to transform our UV business. Expect a series of new and renewed launches in UV space in the next 6-9 months,” he said.
To recover market share in the UV segment, the company plans to launch an SUV, the coded U321 in the current fiscal year.
Apart from this, the company will also launch a compact SUV (codenamed S201) next year, which will compete with segment favorites, the Maruti Vitara Brezza and Ford Ecosport.
In the future, Goenka said there was no sign of moderate demand. “With more stability, we expect robust growth, especially in the tractor segment, which can grow to about 10 to 12% with an upward bias.