Mahindra & Mahindra (M&M) on November 10 reported an 88 percent year-on-year (YoY) fall in Q2FY21 net profit for M&M and MVML at Rs 162 crore against Rs 1355 crore reported in Q2FY20.
A CNBC-TV18 poll had estimated the number to the tune of Rs 1,075 crore.
The company reported a one-time loss of Rs 1,149.5 crore, CNBC-TV18 reported.
Revenue (M&M + MVML) for the said quarter came at Rs 11,590 crore, up 6 percent YoY agianst Rs 10,935 crore in Q2FY20.
The number was above CNBC-TV18 poll’s estimates at Rs 11,113 crore.
EBITDA came at Rs 2,057 crore against CNBC-TV18 poll of Rs 1,643 crore and EBITDA margin came at 17.7 percent against CNBC-TV18 poll of 14.7 percent.
The company said in Q2F2021, the Indian tractor industry reported a growth of 41.4 percent which is the highest ever Q2 quarter growth for the tractor industry.
“Timely relaxation of the COVID lockdown restrictions for the agricultural sector supported by healthy reservoir levels, a good increase in MSP for Kharif crops and important reforms in the agri sector announced by the government focused on improving the state of agriculture in India in the mid to long-term have helped tractor demand to bounce back after April 2020,” said the company.
“On the back of these positive factors, it is expected that tractor demand will remain robust during the upcoming festive season,” it added.
On a consolidated basis, M&M’s revenue from operations for Q2FY21 stood at Rs 23,566.75 crore against Rs 23,935.93 crore YoY.
The automotive segment’s revenue stood at Rs 11,080.89 crore against Rs 12,058.79 crore YoY. Revenue from the farm equipment segment stood at Rs 6,478.24 crore against Rs 5,369.89 crore YoY.
Revenue from financial services came at Rs 3,018.61 crore against Rs 2,880.12 crore YoY.
Consolidated profit for Q2FY21 came at Rs 135.56 crore against Rs 348.14 crore YoY.
News Source:- Moneycontrol