M&M’s Q4 standalone net profit up six percent

Mumbai, May 30 (IANS) Automobile manufacturer Mahindra & Mahindra (M&M) on Monday reported an increase of 6.02 percent in its standalone net profit for the fourth quarter of 2015-16.

The company’s Q4 net profit stood at Rs583.73 crore, up from Rs550.56 crore reported in the corresponding quarter of 2014-15.

The company’s total income for the quarter under review increased by 14.57 percent to Rs10,912.45 crore from Rs9,524.04 crore.

For the full financial year 2015-16, the company’s standalone net profit declined by 4.62 percent to Rs3,167.48 crore from Rs3,321.11 crore in 2014-15.

In contrast, the company’s standalone total income for the year ended March 31, 2016, edged up by 6.22 percent to Rs41,739.83 crore from Rs39,293.77 crore in the previous fiscal.

On a consolidated basis, the company’s net profit after minority interest inched up by 2.35 percent to Rs3,211.26 crore against Rs3,137.47 crore reported in 2014-15.

On the other hand, the consolidated total income rose by 9.14 percent to Rs78,556.60 crore from Rs71,973.03 crore in the previous fiscal.

The company’s board of directors recommended a dividend of Rs12 per ordinary (equity) share of the face value of Rs5 each.

According to the company, during the fiscal under review, some of its major group firms like Tech Mahindra and Mahindra Holidays improved their performance over the previous year.

“The group’s hospitality arm Mahindra Holidays posted a revenue growth of 19 percent and profit after tax growth of 49 percent. Tech Mahindra grew consolidated revenue by 17 percent and consolidated PAT (profit after tax) by 19 percent,” the company said in a statement.

Besides, the company gave a positive outlook. However, it also pointed out that while the macroeconomic environment continued to improve, the pace of growth recovery remained modest and patchy.

“Recent data indicators, however, suggest that a turnaround may be in the offing with the country likely to experience a stronger, more broad-based economic recovery through 2016-17,” the statement said.

“With a robust monsoon season predicted for this year, rural demand will, in all likelihood, pick up pace in the coming quarters.”

The company added that with both infrastructural activity and consumption demand gaining strength, balance sheet stresses in the corporate sector are likely to wane, setting the stage for a revival in domestic private sector investment by the year end.

“Thus, even as we remain alert to the downside risks emanating from a challenging global environment and domestic banking distress, the company’s outlook on the economy remains upbeat and it looks to the future with confidence,” the statement added.

–IANS

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