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M&M, MVML Q4 profit slips 16% YoY to Rs 969 crore, beat Street estimates

The board of the company has recommended a dividend of Rs 8.50 per share.|
Updated: May 29, 2019, 04.40 PM IST
Mahindra group firms M&M and MVML have reported a 16 per cent drop in profit at Rs 969 crore for the quarter ended March 31. The group firms had posted a profit of Rs 1,155 crore in the same period last year.

Analysts in an ET NOW poll had projected a net of Rs 900 crore.

Operating profit margin of M&M and Mahindra Vehicle Manufacturers (MVML) declined to 13.50 per cent from 15.10 per cent in the year ago period.

“The muted demand in rural India on account of poor distribution of Southwest monsoon, a deficit NE monsoon and weak agricultural incomes due to poor price realisation, 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 FY19,” the company said in a release.

Revenue and other income of the company (M&M + MVML) increased 5 per cent to Rs 14,055 crore during the quarter under review.

M&M sold 56,903 units of tractors during the quarter under review, down 15 per cent against 66,885 units in the same period period last year.

However, the company sold 1,63,937 units of total vehicles during January-March period, up 5 per cent, against 1,56,456 units in the same period last year.

The board of the company has recommended a dividend of Rs 8.50 per share.

Standalone profit of M&M declined 19.85 per cent to Rs 848.81 crore from Rs 1,059.09 crore due to an exceptional loss of Rs 104.73 crore on provisions for impairment of certain investments.
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