NEW DELHI: Auto major Mahindra & Mahindra (M&M) and Ashok Leyland (AL) on Friday reported 78 per cent and 93 per cent drop in their year-on-year Q2 profit respectively. While, Japan’s Honda Motor slashed its annual profit and global sales outlook to a four-year low, citing bleak business forecast in India among other factors.
M&M reported 78.44 per cent decline in consolidated profit after tax at Rs 368.43 crore for the quarter ended September 30, 2019, as against Rs 1,708.92 crore reported for the same quarter last fiscal. Revenue from operations stood at Rs 23,935.93 crore as against Rs 25,431.02 crore in the same quarter a year ago, down 5.89 per cent. Likewise, Ashok Leyland reported a 92.61 per cent decline in its net profit to Rs 39 crore in Q2 of FY20.
The company had posted a net profit of Rs 528 crore in Q2 of FY2019. Its revenue stood at Rs 3,929 crore for the second quarter, down 48 per cent. Honda Motor joined the league Suzuki Motor and lowered its expectation from the Indian market. Honda said it had been hit by about 20 per cent slide in motorcycle sales over the last six months. “The Indian market is contracting at a rapid rate,” said Seiji Kuraishi, executive VP, Honda.