M&M returns to profit in Q4
Mahindra and Mahindra (M&M) share price was trading lower by more than 6% on May 31 after company reported profit before exceptional item at Rs 1,002 crore in the quarter ended March 2021 against Rs 323 crore in the year-ago quarter on the back of improvement in demand for passenger vehicles and tractors.
The net profit after exceptional item stood at Rs 163 crore against a loss of Rs 3,255 crore in the same period last year. The massive loss of Rs 3,255 crore in March 2020 was due to the write down of investment in Ssangyong and other international subsidiaries.
Automotive business registered a 42.7% year-on-year growth in revenue at Rs 7,858.1 crore in Q4FY21. At the operating level, the segment reported a 73.1% growth in EBIT at Rs 390 crore with the margin improving 90 bps YoY to 5% during the quarter.
However, the auto maker expects it will take at least another two years for car sales to return to their pre-pandemic peak but a slow pace of vaccinations could hurt recovery prospects
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