COVID-19 Pandemic: Mahindra Registers A Loss Worth Rs 3,255 Crore In Q4 Of FY2020

Mahindra & Mahindra + Mahindra Vehicle Manufacturers Limited have registered a consolidated financial loss worth Rs 3,255 crore during the fourth quarter of FY2020. The finances of the brand during the same period last year had registered a profit of Rs 969 crore.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

The company's total revenue during Q4 of FY 2020 also registered a decline of 35 per cent. It fell from Rs 13,808 crore generated in the final quarter of FY 2019 to Rs 9,005 crore in Q4 of FY2020.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

Among the consolidated losses mentioned, Mahindra & Mahindra's standalone losses accounted for Rs 2,502.42 crore in the final quarter of FY 2020. The company during the same period of the previous financial year had registered a profit close to Rs 849 crore.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

The car manufacturing operations of Mahindra, registered a total income of Rs 9,458.43 crore between January and March 2020. This is a 33.7 per cent drop in income compared to the same period in 2019, which stood at Rs 14,271.92 crore.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

Mahindra also registered a 47 per cent decline in car sales between the month of January and March 2020. Car sales during the period stood at 86,351 units, compared to 1.63 lakh during Q4 of the previous financial year.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

Export sales also registered a massive decline of 57 per cent during the same period. Mahindra vehicle exports fell from 13,541 units in Q4 FY2019 to just a little over 5,700 between Jan - March 2020. Tractor sales, however, did manage to register a marginal growth of 0.45 per cent during the same period.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

Pawan Goenka, Managing Director, Mahindra and Mahindra, said, "In my 41 years in the industry, I have not seen a challenge what we have seen in the last 3 months."

Goenka also mentioned that the main reason for such losses faced by the company was a combination of factors, starting off with the supply-chain disruption in February. However, the main factors which affected the performance of the company were the nationwide lockdown caused by the COVID-19 pandemic and the BS6 transition in between.

Mahindra Registers A Consolidated Loss Worth Rs 3,255 Crore In Q4 FY2020 Because Of COVID-19 Pandemic

Thoughts About Mahindra's Financial Results During Q4 Of FY 2020

Mahindra & Mahindra have been severely affected by the COVID-19 pandemic and the resulting lockdown, which has caused a massive loss for the company during the final quarter of FY 2020. It will take a really long time for the brand to regain lost ground with multiple changes being expected in the coming months.

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Read more on: #mahindra
Article Published On: Saturday, June 13, 2020, 11:09 [IST]
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