Mahindra & Mahindra (M&M) on Wednesday reported 29 per cent decline in consolidated net profit at Rs 5,315 crore for the financial year 2018-19. The company had posted a net profit of Rs 7,510 crore in the previous year.
"Consolidated total income increased by 13 per cent to Rs 1,05,806 crore in FY19 from Rs 93,896 crore reported in the financial year 2017-18," M&M said in a filing to the Bombay Stock Exchange.
On the standalone basis, the Mumbai-headquartered firm's net profit stood at Rs 4,796 crore against the total revenue of Rs 55,303 crore.
In FY19, Mahindra group firms M&M and Mahindra Vehicle Manufacturers (MVML) reported a profit of Rs 5,430 crore, up 30 per cent over the previous year. The total revenue of the company rose by 12 per cent to Rs 54,478 crore.
"This is the first time that the revenue and profit have crossed Rs 50,000 crore and Rs 5,000 crore respectively," the company said.
During the January-March quarter, M&M's net profit fell by 16 per cent to Rs 969 crore from Rs 1,155 crore in the same quarter last year.
Total income was at Rs 14,055 crore versus Rs 13,355 crore in the corresponding quarter last year, up by 5 per cent.
"The muted demand in rural India on account of poor distribution of SW monsoon, a deficit NE monsoon and weak agricultural incomes due to poor price realization, 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 04 of F2019," M&M said in the exchange filing.M&M sold 1,63,937 vehicles during January-March quarter of 2019 as against 1,56,453 units sold in the same quarter last year, posting a growth of 5 per cent. The tractor sales declined by 15 per cent to 56,903 units in Q4FY19 from 66,885 units sold in Q4FY18.
"After seven successive quarters of growth, the domestic automotive industry witnessed a reversal in 04 F2019 mainly due to negative growth of 2% and 5.9% in the Passenger Vehicle (PV) & MHCV goods industry respectively," it added.
The M&M board has recommended a dividend of Rs 8.50 (170%) per share of face value Rs 5.
Edited by Chitranjan Kumar
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