Co’s Q1 PAT Drops 20% on GST Loss
Mumbai: India’s largest tractor maker Mahindra & Mahindra registered a 20% drop in PAT for June ending first quarter of FY18 missing street expectations by significant margin pulled down by .₹ 144 crore of provision on account of transition loss to GST (goods and services tax) regime.
The net profit for April to June first quarter of FY18 stood at .₹ 768 crore versus .₹ 961.3 crore it registered for the same period last fiscal. The out performance in the tractor segment for Mahindra & Mahindra with a record high market share of 45.8% during Q1, helped company circumvent fall in volumes in passenger vehicle space helping net revenues for Q1 to grow by 5.4% to .₹ 11,094 crore. The EBIDTA margins for Q1 declined by 110 basis points to 14.2%.
On the way ahead, V Parthasarthy, CFO of Mahindra said, India’s growth momentum is likely to pick up in the coming quarters with ongoing remonetisation further easing of interest rates and fillip to consumption demand.