M&M Q4 drops, weighed down by farm equipment revenues

Automotive and farm equipment maker Mahindra and Mahindra has posted its Q4 where its revenues and profits dropped QoQ but gave better results YoY. The stock of M&M is slightly down at Rs 1327 after the results.

Company’s quarter on quarter standalone revenues stand at Rs 10666.43 crore as against Rs 10900.39 crore ,with a drop of 2.1 per cent. Segment wise company’s automotive segment has risen from Rs 7428.02 crore to Rs 8058.45 crore in Q4FY16. However, revenues from the farm equipments have dropped from Rs 3582.27 crore to Rs 2742.55 crores.

EBITDA too has reported a drop of 15.6 per cent to Rs 1048.96 as against Rs 1242.45 core in the last quarter. Net profit too has declined by 27.8 per cent to Rs 583.73 crore from Rs 807.99 crore in the last quarter.

Year on year results show that company’s revenues have grown 14.8 per cent from Rs 9288.88 crore in the corresponding quarter of the previous year. Net profits have grown 6 per cent from Rs 550.56 crore.

M&M’s yearly consolidated revenues remain flat at Rs 69785.97 crore for the year ended March 2016 as against Rs 63361.96 crore in the previous year. Net profits remain positive with 3.2 per cent at Rs 3321.11 crore from Rs 3211.26 crore.

M&M Ltd. now deals in 18 industries. The major business segments include Automotive Segment that includes sale of automobiles, spare parts and related services; and Farm Equipment Segment with sale of tractors, spare parts and related services. It operates in other industries through its subsidiaries Tech Mahindra Limited, Mahindra & Mahindra Financial Services Limited, Mahindra Investments (India) Private Limited, Mahindra Investments (International) Private Limited etc.