Mahindra & Mahindra announced its financial results for the second quarter of FY2021 ending on September 30, 2020, and the company reported an 88 per cent year-on-year fall in the net profit for the period. This includes Mahindra & Mahindra (M&M) as well as Mahindra Vehicle Manufacturers Limited (MVML). The net profit for Q2 FY2021 stood at ₹ 162 crore, as against ₹ 1355 crore reported during Q2 FY2020. The auto giant reported a one-time loss of ₹ 1149.5 crore.
M&M and MVML reported its revenue for the quarter at ₹ 11,590 crore, which registered a hike of six per cent year-on-year when compared to ₹ 10,935 crore in Q2 FY2020. M&M's consolidated revenue from operations for Q2 FY2021 stood at ₹ 23,566.75 crore, as against ₹ 23,935.93 crore year-on-year.
The EBITDA for Mahindra stood at ₹ 2057 crore, as against ₹ 1643 crore during the previous quarter, while the EBITDA margin stood at 17.7 per cent.
While commercial vehicle sales have been down for the complete sector, tractor sales witnesed strong growth as the Indian tractor industry reported an increase of 41.4 per cent in volumes, which is the highest-ever Q2 growth for the tractor industry.
In a statement, the Mahindra said, "Timely relaxation of the COVID lockdown restrictions for the agricultural sector supported by healthy reservoir levels, a good increase in MSP for Kharif crops and important reforms in the agri sector announced by the government focused on improving the state of agriculture in India in the mid to long-term have helped tractor demand to bounce back after April 2020. On the back of these positive factors, it is expected that tractor demand will remain robust during the upcoming festive season."
The auto segment's Q2 FY2021 revenue stood at ₹ 11,080.89 crore, as against ₹ 12,058.79 crore during the same period last fiscal. Meanwhile, revenue from the farm equipment sector stood at ₹ 6478.24 crore, as opposed to ₹ 5369.89 crore at the end of Q2 FY2020. The revenue from financial services came in at ₹ 3018.61 crore, growing substantially over ₹ 2880.12 crore year-on-year. Lastly, the consolidated profit for the previous quarter stood at ₹ 135.56 crore, as against 347.14 crore over the same period last fiscal.