Mahindra & Mahindra reported a 19.85 per cent decline in its standalone profit after tax (PAT) to Rs 848.81 crore for the fourth quarter of 2018-19. The company had posted a PAT of Rs 1,059.09 crore in the corresponding period of 2017-18. At a consolidated level, revenue for the company stood at ₹ 14,055 crore; up by 5 per cent while profit after tax was ₹ 969 crore, down by 16 per cent.
According to the company, the muted demand in rural India on account of poor distribution of SW monsoon, a deficit North East 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 company said that total vehicle sales during the fourth quarter were at 1,63,937 units as against 1,56,453 units in the year-ago quarter, a growth of 5 per cent, while passenger vehicle sales stood at 77,607 units, up 7 per cent over the corresponding period previous year. The company now has three strong new products - Marazzo, Alturas G4 and the XUV500; which will see full year impact on volumes in FY19-20. It also exported 10,200 vehicles during the current quarter, registering a growth of 17.1 per cent over the corresponding quarter previous year.
The domestic tractor industry witnessed a fall of 8.4 per cent during the quarter and the Company sold 56,903 tractors in the domestic market and exported 3,341 tractors, a decline of 14.9 per cent and 10.9 per cent respectively over the corresponding quarter of the previous year.