News Analysis

M&M Q4: Farm equipment unit provides the heft

Parvatha Vardhini C BL Research Bureau | Updated on January 12, 2018 Published on May 30, 2017

Mahindra and Mahindra’s 2.4-per cent growth in standalone revenues to ₹12,012 crore in the quarter ended March 2017 was predominantly supported by the farm equipment division.

While automobile segment revenues at best remained flat during the quarter (over the same period last year), the farm equipment segment, which contributes to about one-fourth of the company’s topline, posted a 15 per cent growth in revenue.

Even as volumes in the auto segment plunged in January and February and managed only single digit growth in March, farm equipment unit recorded 6-32 per cent growth. The company has seen steady pick-up in tractor sales after the sharp plunge in volumes in November 2016 following the demonetisation announcement. This was helped by a good Rabi crop and government thrust on rural and agriculture sectors in the Budget. Topline growth for the company could have been slightly better had it not taken a ₹171-crore hit due to discount sale of BS III vehicles towards the end of the quarter.

Despite lacklustre topline growth and pressure on the operating margin, the company managed a 20 per cent growth in net profit to ₹725 crore. It was helped by a 170 per cent increase in other income to ₹308 crore. Besides, it also made an exceptional gain of ₹94 crore on the sale of long-term investments. Adjusting for this, profit growth came in at 5.5 per cent over the March 2016 quarter.

Published on May 30, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.