Mahindra net profit plummets 85%

Mumbai: Auto major Mahindra on Tuesday reported a massive 85 per cent plunge in its consolidated net profit at Rs 200 crore in the quarter to December 2019 due to lingering demand crisis.

The bottomline shrank so badly even as revenue fell only 4 per cent to Rs 25,303 crore, while margin improved to 14.8 per cent from 13.2 per cent, the company said.

On a standalone basis also, net profit fell 73 per cent to Rs 380 crore during the reporting period while revenue declined only 6 per cent to Rs 12,120 crore.

Overall sales fell 8 per cent to 1,23,353 units, as tractors declined 6 per cent to 81,453 units and exports plunged 22 per cent to 9,633 units.

Against this, the overall auto industry sales fell 7 per cent till December.

The management guided towards a not-so-bright future saying the volumes will close in the red in year to March as the problem of falling demand will linger into the first half of the next fiscal as well.