New Delhi, Aug 7 (IANS) Automobile major Mahindra and Mahindra (M&M) on Friday reported a massive decline in its standalone net profit for Q1FY21, on the back of the Covid-19 outbreak along with the impact of an exceptional item.
According to the company, the standalone net profit during the quarter under review fell to Rs 112 crore from Rs 2,314 crore reported in the corresponding period of the previous financial year.
On a combined basis, M&M and Mahindra Vehicle Manufacturers’ (MVML) net profit during Q1 fell to Rs 68 crore from Rs 2,260 crore reported for the corresponding period of the previous fiscal.
“The unprecedented shock induced by Covid-19 is the worst that India has seen in the post-independence period. This is the first instance of a simultaneous demand and supply shock – making it different from the previous crises,” the company said in a statement.
“A combination of lower incomes and heightened uncertainty is expected to drag consumer spending and business investment in F2021. It is now a foregone conclusion that the economy is set to contract during the year – the first time in 41 years.”