Mahindra & Mahindra rose 0.17% to Rs 671.75 at 14:22 IST on BSE after the company announced Q4 result during trading hours today, 29 May 2019.
Meanwhile, the S&P BSE Sensex was down 197.21 points, or 0.5% to 39,552.52
On the BSE, 1.55 lakh shares were traded in the counter so far compared with average daily volumes of 1.70 lakh shares in the past two weeks. The stock had hit a high of Rs 677 and a low of Rs 660.80 so far during the day.
Mahindra & Mahindra (M&M) said combined profit from ordinary activities after tax (after EI) fell 16% to Rs 969 crore in Q4 March 2019 over Q4 March 2018. Combined revenues and other income rose 5% to Rs 14055 crore. Combined operating profit margin (OPM) was reported at 13.5% in Q4 March 2019, lower than 15.1% in Q4 March 2018.
The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.
M&M said that the muted demand in rural India on account of poor distribution of south west monsoon, a deficit north east 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 Q4 March 2019.
In its outlook, M&M said that domestic economic activity has weakened during FY2019 especially during the second half of FY2019 and there are continued uncertainties with respect to the extent of monsoon activity for this year. The expectations in the global scenario are also muted due to the potential for further escalation in global trade tensions.
M&M enjoys a leadership position in utility vehicles, and is the world's largest tractor company, by volume.
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