Mahindra and Mahindra today announced the financial results for the fourth quarter of Financial Year 2019-20. The combined consolidated loss of Mahindra and Mahindra + Mahindra Vehicle Manufacturers Limited stood at Rs. 3,255 crore, as compared to the Rs. 969 crore profit it made in the Q4 of the financial year 2019. The company's total consolidated revenue for the last quarter of FY2020 was Rs. 9,005 crore, a drop of 35 per cent, as compared to the total revenue of Rs. 13,808 crore generated during the same quarter in FY2019. Mahindra reported a one-time impairment of Rs. 3,577.64 crore. The impairment was recognised based on the performance of certain subsidiaries, associates, joint ventures and due to the Covid-19 pandemic, the company said. Almost 80 per cent of this impairment is due to the write-downs of investments in Ssangyong, as well as some other international subsidiaries, which hurt the company's bottom line.
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Mahindra and Mahindra and Mahindra Vehicle Manufacturers Limited posted a consolidated loss of Rs. 3,255 crore
Commenting on the company's performance, Pawan Goenka, Managing Director, Mahindra and Mahindra, said, "In my 41 years in the industry, I have not seen a challenge what we have seen in the last 3 months." Goenka also said that supply change disruptions started in mid of February 2020, plus there was a major fire accident at a supplier in towards the end of the month. He also said that the lockdown issued due to the coronavirus pandemic and the BS6 transition also had a big impact on the company's performance.
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Mahindra and Mahindra's standalone results for the same period saw the company post a loss after tax of Rs. 2,502.42 crore for the quarter that ended on March 31, 2020. In comparison, Mahindra reported a profit of Rs. 848.81 crore during the same period in the last financial year, which ended on March 31, 2019. The carmaker's total income for the January and March 2020 period stood at Rs. 9,458.43 crore, a decline of 33.7 per cent, as compared to its net income of Rs. 14,271.92 crore for the same quarter in 2019.
Between January and March 2020 Mahindra sold 86,351 units, witnessing a decline of 47 per cent
The total number of vehicles sold during the January-March 2020 stood at 86,351 units, a decline of 47 per cent, compared to the 1,63,937 vehicles sold in the same quarter last year. Tractor sales at the same time witnessed a marginal growth of 0.45 per cent with 57,164 units being sold compares to the 56,903 tractors sold during the same period in 2019. Exports, on the other hand, dived 57 per cent at 5,783 units, as against 13,541 units exported between January-March 2019.
