M&M Q4 cons profit tanks 39% to Rs 586 cr on lower revenue

Consolidated revenue fell 19.2 percent to Rs 9,123 crore during January-March quarter compared to Rs 11,297 crore in the corresponding quarter of last fiscal, dented by lower tractor sales.

The company said domestic tractor sales volumes declined 29.9 percent, the worst de-growth in 47 quarters, to 34,682 units with market share of 35.5 percent, impacted by unseasonal rains and hail storms affecting farm equipment sales.

Total sales volumes during the quarter dropped 15.7 percent Y-o-Y to 1.62 lakh units with auto sector sales falling 10 percent due to competition.

Operating profit in March quarter tanked 36.5 percent to Rs 1,004 crore and margin compressed by 300 basis points to 11 percent compared to the same quarter last year.

Meanwhile, standalone profit was down 38.6 percent year-on-year to Rs 550.6 crore and total income from operations slipped 13.1 percent to Rs 9,557 crore in the quarter gone by. Operating profit declined 0.6 percent to Rs 901 crore but margin expanded 120 basis points to 9.4 percent during the same period.

Provision for tax expenses for the quarter stood at Rs 168.8 crore against tax gain of Rs 214.2 crore in the corresponding quarter of last fiscal.

Mahindra and Mahindra has decided to pay dividend of Rs 12 per share for FY15.

At 14:54 hours IST, the scrip was quoting at Rs 1,262.95, up Rs 61.50, or 5.12 percent on the BSE.