M&M has reported a 36.7 per cent decline in standalone net profit for the fourth quarter ended March 31, 2015 to Rs 550.56 crore as against Rs 896.88 crore in the same quarter of the previous fiscal due to a dip in tractor as well as utility vehicle sales.
Net sales for the company also declined 13.16 per cent to Rs 9,411.52 crore as against Rs 10,837.89 crore in the comparable quarter last year.
“In Q4 of FY15, sales were somewhat impacted due to rollback of excise duty concession with effect from January 1, 2015. Unseasonal rains and hailstorms in various parts of the country cause crop damage. The crop damage, coupled with subdued crop prices resulted in loss of farm incomes which in turn created a negative sentiment in the farming community,” M&M said.
“Over the shorter run, however, risks to the economy stemming from the El Nino warning currently in place, upcoming monetary policy normalisation in the United States, ongoing uncertainties in the euro zone and, potential spillovers from geopolitical conflicts in Eastern Europe and the Middle East, warrant a vigilant stance,” the company said.
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