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M&M Fourth Quarter Profit 50 Percent to ₹1,155 Crore from Tractor Sales

Chander Mohan
Chander Mohan

For the year 2017-18, improvement in overall economic sentiment, two consecutive years of normal monsoon, Government’s focus on the development of Agri and rural sectors, with continued investment in infrastructure, coupled with easy availability of affordable finance, helped drive the demand for the automotive as well as the tractor industry.

Revenue from the farm equipment segment rose 42 percent year-on-year to 3,716 crore. Revenue from the automotive segment rose 19.6 percent to 9,105 crore.

Mahindra & Mahindra has reported a net profit of 1,155 crore for the fourth quarter ended March 31, 2018, an increase of 50 percent from the year-ago period, helped by the big boost in tractor sales coupled with the company's cost-cutting measures.

The automaker’s consolidated revenues grew 25.6 percent year-on-year to 13,189 crore driven by the farm equipment segment.

Operating margins expanded to 15.1 percent in the quarter from 11.2 percent in the comparable quarter last year.

Pawan Goenka, Managing Director informed “This has been our best quarter ever,". “Our auto sector grew by 20 percent —highest in 21 quarters, tractors grew at 40 percent — highest in 31 quarters and we also had best margins ever in tractors."

Goenka, however, further added that oil price rise, firming up of commodity prices and liquidity crunch and capacity constraints with suppliers could be potential challenges for the company this year.

He further expects that M&M`s  8-10 percent growth this year in its tractor sales and 10-12 percent growth in commercial vehicles sales.

Goenka is Optimistic for 2018-19.

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