Mahindra & Mahindra, on Friday, reported consolidated net profit of Rs 1,268 crore for the December quarter of 2020-21 (Q3FY21). The company said it has incurred a one-time loss of Rs 1,214 crore, which impacted the bottom-line. For comparison, the company had reported profit of Rs 891.5 crore in the year-ago quarter.
The company’s revenue also grew 11 per cent on a year-on-year (YoY) basis to Rs 21,625.95 crore from Rs 19,430 crore, reported in the corresponding quarter last year.
Analysts at Motilal Oswal had expected M&M to report profit of Rs 1,278.1 crore for the quarter while revenue was pegged at Rs 13,734.1 crore.
In the domestic market, the company sold 1.15 lakh vehicles in the quarter under review, down 7 per cent from 1.23 lakh sold in Q3FY20. Meanwhile, tractor sales grew 20 per cent YoY to 97,420.
Operating performance
The company reported earnings before interest, tax, depreciation, and ammortisation (Ebitda) at Rs 3,520.4 crore, down 1 per cent YoY. Ebitda margin came in at 16.3 per cent for the quarter as compared to 18.4 per cent reported in Q3FY20.
Outlook
The company said that the growth momentum for the tractor industry was supported by positive sentiment in rural parts of the country, specifically the agri economy which is driven by very good monsoon, healthy reservoir levels, record kharif
production, good rabi sowing, continued high Central Government spending in Agriculture and Rural Development.
“On the back of these positive factors, it is expected that tractor demand will remain robust during the coming quarter as well,” it said.
Meanwhile, shortage of semi-conductors impacted availability of ECUs, due to a high dependence on one supplier, and steep increase in commodity prices, partially offset by a sales prices increase and value engineering actions, remain the key areas of concerns, it said.
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