The Board of Directors of Mahindra and Mahindra (M&M) Limited announced the unaudited financial results for the quarter ended 30th June 2015 of the company and the consolidated Mahindra Group.
Q1 F2016 – M&M + Mahindra Vehicle Manufacturers Limited (MVML) Results:
The Gross Revenues and Other Income of the Combined Entity for the quarter ended 30th June 2015 stood at Rs. 10,474 crore as against Rs. 10,734 crore in the corresponding quarter of the previous year. The Profit before tax for the current quarter is Rs. 1,149 crore as against Rs.1,202 crore in the corresponding quarter of the previous year. The Net Profit after tax for the current quarter is Rs. 831 crore as against Rs. 896 crore in the corresponding quarter of the previous year.
In the current quarter, the passenger vehicle market grew 8% driven by growth in the car segment. The UV segment continued to be under pressure and de-grew by 0.6%. In the commercial vehicle industry, the LCV segment continues to be in the negative but the MHCV goods segment continued to grow on back of improvement in industrial activity, movement in infrastructure projects and some replacement demand.
The tractor industry witnessed a sharp de-growth in Q4 F2015 owing to the stress in the Agri Economy caused primarily by crop damage due to unseasonal rains. Going into Q1 F2016, uncertainty loomed over the prospect of a good Kharif crop with the IMD forecasting a less than normal monsoon. This, along with only a marginal increase in Minimum Support Prices, resulted in subdued rural sentiments, leading to another quarter of de-growth in the Tractor industry. However, some positivity is seen in the later part of June 2015 with the monsoon setting in on time.
The Combined Entity with sales of 49,354 utility vehicles during the current quarter maintained its leadership position with a market share of 38.5%. In Q1 F2016, the domestic tractor industry de-grew 16.4%. With sales of 59,348 tractors in the domestic market, the Combined Entity maintained its market leadership with a market share of 41.5%. The Combined Entity exported 8,449 vehicles and 3,208 tractors, a growth of 29% and 24% respectively over the corresponding quarter in the previous year.
Q1 F2016 – M&M Standalone results
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 30th June 2015 is Rs 10,629 crore as against Rs 10,863 crore in the corresponding quarter of the previous year. The Net Profit after tax for the quarter is Rs 852 crore for the current quarter as against Rs 882 crore in the corresponding quarter of the previous year.
The Net profit before tax for the current quarter is Rs 1,150 crore as against Rs 1,111 crore (after adjusting for one time gain) in the corresponding quarter of the previous year – a growth of 3.5%. The Net Profit after tax for the current quarter is marginally lower at Rs 852 crore as against the adjusted Rs 854 crore in the corresponding quarter of the previous year.
Domestic risks stemming from overstretched corporate and bank balance sheets and the slowing pace of structural reforms, are also a source of some concern. The company’s balance sheet, however, remains healthy and well buffered, and it looks to the future with optimism, while remaining alert to the near term risks outlined above.