Covid-19 impact: M&M Q1 profit skids 97% as auto sales hit speed bump

Farm equipment's robust performance cushions the impact

Mahindra & Mahindra (M&M) saw a steep fall in first quarter earnings, with the lockdown proving a speed breaker for auto sales.

However, a strong showing in the farm equipment sector helped offset the impact of lower auto earnings, thereby saving saved the company from slipping into red.

Profit before tax (PBT) of the Mumbai-headquartered firm contracted 97 per cent to Rs 39 crore in the June 2020 quarter, against Rs 1,371 crore in the corresponding quarter last year.

Revenue for Q1 also fell 56 per cent to Rs 5,589 crore, from Rs 12,805 crore a year ago. Overall performance was dragged down