Share price of Mahindra & Mahindra gained over 6% to a touch a fresh 52- week high in opening trade after the company reported its performance for Q1FY21.
Mahindra & Mahindra registered a 97% YoY fall in its net profit to Rs 67.8 crore for the quarter ended June 2020 against Rs 2,259.74 crore in the same period last year. M&M said profit before the exceptional gain of Rs 29 crore fell 96% YoY to Rs 39 crore for the quarter.
Following the result update, Mahindra & Mahindra stock touched a 52-week high of Rs 640.55, rising 6.65% on BSE against the earlier close of Rs 600.60 on BSE. M&M stock has gained after 2 days of consecutive fall.
Mahindra & Mahindra stock is trading higher than 5, 20, 50, 100 and 200-day moving averages. Market capitalisation of the firm stood at Rs 1,750.97 crore as of today's session. Mahindra & Mahindra stock price has gained 5.7% in one week, 13% in one month and 18% since the beginning of the year.
Company's net sales saw a decline of 56.65% YoY to Rs 5,602.18 crore in Q1 FY21, from Rs 12,922.72 crore units during Q1 FY20. EBITDA slipped 65.14% YoY at Rs 676.95 crore in April-June 2020 from Rs 1,941.85 crore in April-June quarter of 2019.
On a quarterly basis, net loss fell 110.69% to Rs 97.62 crore in April-June quarter of 2020, from Rs 913.54 crore in June 2019.
In its AGM meeting on last Friday, company's chairman Anand Mahindra stated that in 2018, M&M was declared to be the best-performing stock on the Nifty since 2002 and added "We have the ability to turn the worst of times into the best of times. And, it is our happy experience that the worst of times is often just the trigger that propels us towards the best of times."
He added, "I firmly believe that the worst will soon be behind us and the best of times are well within reach. Today, our factories are humming again, we have reinvented our business, we have moved sale online (and) we are all set to rise. We have already started identifying and taking appropriate action on businesses that have not lived up to their business plans."
He also stated to the company shareholders that the Covid-19 pandemic has given "us an opportunity to reboot our thinking, to reinvent our approach and to recommit ourselves to our financial goals".
Mahindra & Mahindra's board in its annual general meeting (AGM) (last Friday) also moved a special resolution to cut down shareholding to less than 50% in SsangYong.