Homegrown farm gear and utility automobiles main Mahindra & Mahindra Ltd (M&M) on Friday reported 6 per cent decline in consolidated revenue after tax from persevering with and discontinued operations at Rs 159.6 crore for the third quarter led to December.
The firm had posted a consolidated revenue after tax from persevering with and discontinued operations of Rs 170.69 crore in the identical interval of the final fiscal, M&M mentioned in a regulatory submitting.
The consolidated income from operations stood at Rs 21,625.95 crore through the quarter underneath evaluation as towards Rs 19,430.29 crore within the corresponding interval of the final fiscal, it added.
“In the consolidated financial statement, the loss from operation of SYMC (Ssangyong Motor Company), including impairments aggregating to Rs 1,938.35 crore and gain on deconsolidation of SYMC as a subsidiary aggregating to Rs 940.03 crore resulted in a net loss of Rs 998.32 crore, which has been presented as profit/loss from discontinued operations,” the corporate mentioned.
Out of this internet loss, M&M mentioned 563.84 crore is attributable to the corporate.
SYMC filed an utility earlier than the Bankruptcy Court for the graduation of rehabilitation proceedings on December 21 2020. It is now making ready and plans to submit a pre-packaged rehabilitation plan (p-plan) with fairness funding from an investor and debt from native lenders. There is not any improve in M&M publicity as in comparison with the second quarter of monetary yr 2020-21, it added.
On a standalone foundation, M&M posted a 90 per cent decline in revenue after tax at Rs 30.93 crore as towards Rs 306.55 crore within the year-ago quarter, the submitting mentioned.
Based on the administration judgement and finest estimated assumptions of the realisation of the realisable worth of the belongings referring to SYMC, the corporate mentioned it had recognised an impairment of Rs 1,210.48 crore within the standalone monetary outcomes.
Standalone revenues from operations have been at Rs 14,215.90 crore as towards Rs 12,345.29 crore within the year-ago quarter, it added.
In the third quarter the corporate’s home automobile gross sales have been down 7 per cent at 1,15,272 items as towards 1,23,353 items within the year-ago interval, it mentioned.
However, tractor gross sales have been up 20 per cent at 97,420 items, which is its highest ever quarterly quantity, as towards 81,435 items within the year-ago interval, the corporate mentioned.
The automotive phase clocked income of Rs 8,606.17 crore through the quarter as towards Rs 7,706.73 crore within the year-ago interval, whereas the farm gear division posted a income of Rs 6,814.76 crore as in comparison with Rs 5,456.64 crore in the identical interval of the final fiscal, the corporate mentioned.
M&M mentioned through the quarter capital allocation actions have been focused at loss-making subsidiaries, these actions considerably contributed to the monetary efficiency. They embrace the turnaround of companies, restructuring to realize profitability and exit from a number of companies.
During the quarter, the corporate mentioned its most important considerations have been provide points, particularly the scarcity of semiconductors impacted the provision of ECUs, as a consequence of a excessive dependence on one provider. Also, there was a steep improve in commodity costs, partially offset by a gross sales costs improve and worth engineering actions, it added.
On the outlook, the corporate mentioned for the auto sector, with many key indicators exhibiting optimistic momentum, the calendar yr 2021 has began with robust momentum. However, some vital challenges do exist, particularly on the availability aspect and commodity costs.
As for the tractor trade development was supported by optimistic sentiment in rural elements of the nation, particularly the agri economic system which is pushed by excellent monsoon, wholesome reservoir ranges, file kharif manufacturing, good rabi sowing, continued excessive central authorities spending in agriculture and rural growth, it mentioned.
“On the back of these positive factors, it is expected that tractor demand will remain robust during the coming quarter as well,” M&M mentioned.
