Mahindra & Mahindra Q1 profit falls 94% at Rs 55 crore

New Delhi: Homegrown Auto major Mahindra & Mahindra on Friday reported 94 per cent decline in consolidated profit at Rs 54.64 crore for June quarter 2020, adversely impacted by the COVID-19 pandemic.

The company had posted a profit after tax of Rs 894.11 crore in the same period last fiscal, M&M said in a regulatory filing.

Standalone revenue from operations for the quarter was at Rs 5,602.18 crore as compared to Rs 12,922.72 crore in the year-ago period, M&M said.

Revenue from operations during the quarter under review stood at Rs 16,321.34 crore as against Rs 26,041.02 crore in the year-ago period, down 37 per cent, it added.

The automotive segment posted a revenue of Rs 6,508.6 crore in the first quarter, down from Rs 13,547.84 crore in the same period a year ago. Farm equipment segment's revenue was Rs 4,906.92 crore as against Rs 6,077.9 crore in the same quarter last fiscal.

Revenue from financial services stood at Rs 3,031.69 crore as compared to Rs 2,822.03 crore in first quarter last year. Hospitality segment recorded a revenue of Rs 294.26 crore as compared to Rs 612.49 crore in the same period a year ago, the company added.

"In Q1 F2021, the Indian auto industry (excluding two wheelers) reported a de-growth of 81.5% over the previous year. After the first ever zero sales in the month of April, the industry is finding its way back. The Company's key brands which have a strong rural bias saw good demand in the month of June. However, low pipeline inventory coupled with the challenges of ramping up production due to supply chain issues affected the Company's sales. The Company continues its strong focus on cost management to improve its financial performance in these testing times. Its timely decision to raise funds along with good cash generation in the quarter has further strengthened the Company's cash position," M&M said.