Mumbai : The Board of Directors of Mahindra & Mahindra Limited today announced the unaudited financial results for the quarter ended 30^th June 2018 for the Company.

 

Q1 F2019 – M&M + MVML[1] Results                                              

				Rs. crores
	Q1 F2019		Q1 F2018		Growth % YoY
Revenues and Other Income	13,551		11,006		23%
Profit from ordinary activities Before Tax (before EI)	1,830		1,130		62%
Profit from ordinary activities After Tax (before EI)	1,238		752		65%
Profit from ordinary activities After Tax (after EI)	1,257		752		67%
Operating margin (OPM)	15.8%		13.2%
Vehicles sold (Nos)	1,30,484		1,12,293		16%
Tractors sold (Nos)	96,527		81,270		19%
Exports (vehicles and tractors) (Nos)	12,730		8,031		59%

 

(Tractors which were earlier exempt from excise duty are now subject to GST. To make the figures comparable, the numbers for Q1 F2018 with respect to revenue and material cost for tractors have been restated as if the current GST regime had been applicable earlier).

 

For Q1 F2019, the Indian automotive industry (excluding two wheelers) grew 28.4% with passenger vehicles growing by 19.9% and the commercial vehicle industry growing by 51.5%. The domestic tractor industry witnessed a growth of 23.4% in Q1 F2019. The demand for both automobiles and tractors was driven by positive sentiment in the economy (both urban and rural) due to a third consecutive year of a normal monsoon, sustained investment in road & infra projects and availability of affordable finance. However, for the automotive industry, the exceptionally high growth numbers are due to the low base effect. In Q1 F2018 the industry volumes for passenger vehicles was on the lower side due to the slowdown in demand preceding the implementation of GST in July 2017 and commercial vehicle volumes being adversely impacted due to supply constraints arising from implementation of BS IV norms.

In Q1 F2019, the total domestic automotive volume for the Company grew by 16.2%. The HCV volume grew 123.4% resulting in a market share of 5.7%. The Company exported 9,360 vehicles during the current quarter, a growth of 100.2% over the corresponding quarter previous year. The Company’s domestic tractor sales grew by 18.8% in Q1 F2019 and the Farm Equipment Segment’s revenue and results crossed the landmark numbers of Rs. 5,000 crores and Rs 1,000 crore respectively.

Outlook

Consumption, both rural and urban, remains healthy. A normal monsoon, with a satisfactory temporal and spatial distribution, combined with the recently approved higher MSP for kharif crops should help support rural consumption further. Improving capacity utilisation and credit offtake too augur well for investment activity. While RBI’s GDP growth forecast for 2018-19 has been retained at 7.4 per cent, growth is estimated to be more front-ended. Global growth backdrop has remained buoyant so far. However, the recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions. These could pose risks to global recovery and investments.

Q1 F2019 – M&M Standalone results

Rs. crores

	Q1 F2019	Q1 F2018	Growth % YoY
Revenues and Other Income	13,785	12,580	10%
Profit from ordinary activities After Tax (after EI)	1,221	749	63%

 

 

Group Consolidated Results

The Board meeting to approve the Q1 F2019 results is yet to be held by one listed subsidiary of the Company. After the approval and announcement of the results by the subsidiary, the Company will separately release the information on Consolidated Group Turnover and PAT.