M&M Q4 profit down 39%, misses estimates

Net sales down 13% to Rs 9,412 crore

Homegrown auto major Mahindra & Mahindra today reported 38.61 per cent decline in standalone net profit at Rs 550.56 crore for the fourth quarter ended March 31, hurt by slowdown in automotive and farm equipment segments.

The company had posted a net profit of Rs 896.88 crore in the corresponding period of the previous fiscal, Mahindra & Mahindra said in a filing to BSE.

Net sales during the period under review stood at Rs 9,411.52 crore as against Rs 10,837.89 crore in the year-ago quarter, down 13.16 per cent.

In the fourth quarter, Mahindra & Mahindra along with its wholly-owned arm Mahindra Vehicle Manufacturers Ltd (MVML) sold 57,027 utility vehicles, while tractor sales stood at 34,682 units, the company said.

For the full fiscal ended March 31, 2015, the company's consolidated net profit stood at Rs 3,137.47 crore as against Rs 4,666.93 crore in the previous fiscal, down 32.77 per cent.

Net sales on a consolidated basis in 2014-15 were at Rs 70,797.87 crore as compared to Rs 72,758.77 crore in the previous year, down 2.69 per cent.

The board of directors of the company has recommended a dividend of Rs 12 per share of face value of Rs 5, which will absorb a sum of Rs 846.89 crore, inclusive of tax, it added.

"The prevailing economic conditions combined with subdued consumer interest affected performance of companies in the group," Mahindra & Mahindra said.

On the outlook, it said: "With recovery still tentative in the developed work and growth slowing across major emerging markets, external demand remained weak and uninspiring through the year.

"At the same time, poor monsoons and unseasonal winter rains combined with moderating food prices to depress farm incomes with inevitable negative impacts on domestic consumption demand."

Shares of Mahindra & Mahindra were trading at Rs 1,245 per scrip in afternoon trade, up 3.62 per cent from previous close on the BSE.

M&M said Bharat Doshi, Non-Executive Director of the Company, will relinquish his position as a Director with effect from the conclusion of the 69th Annual General Meeting, which is scheduled to be held on August 7, 2015.