Mahindras hit GST bump; Q1 profit crashes by 20%
Homegrown auto major Mahindra & Mahindra (M&M) on Friday reported 19.79 per cent decline in its standalone profit after tax (PAT) to Rs 765.96 crore for the first quarter of the current fiscal as sales were hit by GST transition.
The company had posted a PAT of Rs 954.95 crore during April-June period of last financial year.
Revenue from operations during the first quarter of 2017 -18 stood at Rs 12,335.56 crore, up 3.29 per cent from Rs 11,942.9 crore the year-ago period, M&M said in a regulatory filing.
The company's vehicle sales were at 1,12,293 units during the first quarter. It sold 81,270 tractor units during the period under review.
Elaborating on the quarterly performance, M&M said the automotive industry was impacted due to impending transition to Goods and Service Tax in the first quarter of 2017-18.
Passenger vehicles sales were adversely impacted in anticipation of a price reduction in the new tax regime and reported a nominal growth of 4.4 per cent, it said.
M&M further said heavy commercial vehicles (goods) segment also showed a decline as a result of pre-buying of BS-III vehicles in Q4 of the previous fiscal.