Auto major Mahindra on Tuesday reported a massive 85 per cent plunge in its consolidated net profit at Rs 200 crore in the quarter to December 2019 due to lingering demand crisis. The bottomline shrank so badly even as revenue fell only 4 per cent to Rs 25,303 crore, while margin improved to 14.8 per cent from 13.2 per cent, the company said.
Managing Director Pawan Goenka explained bottomline numbers are so bad because of a one-time loss of Rs 554 crore as against a one-time gain of Rs 519 crore in Q3 of FY19.
On the transition to BS-VI, Goenka said already they have begun production of two models and by the end of this month it should be stopping production of BS-IV models provided the supply from the coronavirus-hit China normalises. “As of now there is uncertainty on around 4,000 BS-IV unit, as two key components are sourced from China. But since the outbreak of the epidemics, supply has stopped.
“So, if supply of these two components doesn’t normalise over the next two weeks there is uncertainty, which may force us to move the SC seeking to sell these units after the March 31 as this is caused by force majeure,” he said.