M&M's profit dips 29 pc to Rs 5,315 crore in FY19

Mumbai (Maharashtra) [India], May 29 (ANI): 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 fiscal.
"Consolidated total income increased by 13 per cent to Rs 1.05 lakh crore in FY19 from Rs 93,896 crore reported in the financial year 2017-18," M&M said in a statement.
On a standalone basis, the company'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.
In the January to 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 of last year. Total income was 5 per cent at Rs 14,055 crore compared to Rs 13,355 crore in Q4 of FY18.
"The muted demand in rural India on account of poor distribution of southwest monsoon, a deficit northeast monsoon and weak agricultural incomes due to poor price realisation, 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 Q4 of FY2019," M&M said.
The M&M board of directors has recommended a dividend of Rs 8.50 per share of face value Rs 5.
M&M sold 1.64 lakh vehicles from January to March 2019 as against 1.56 lakh units sold in the same quarter of last year. Tractor sales declined to 56,903 units from 66,885 units.
"After seven successive quarters of growth, the domestic automotive industry witnessed a reversal mainly due to negative growth of 2 per cent and 5.9 per cent in the passenger vehicle and medium to heavy commercial vehicle goods industry respectively," it added. (ANI)