NEW DELHI: Homegrown auto major Mahindra & Mahindra (M&M) on Friday reported a 6 per cent year-on-year decline in consolidated profit after tax due to discontinued operations. Net profit after tax stood at Rs 159.6 crore for the third quarter ended in December (Q3FY21).
“In the consolidated financial statement, the loss from operation of SYMC (Ssangyong Motor Company), including impairments aggregating to Rs 1,938.35 crore and gain on deconsolidation of SYMC as a subsidiary aggregating to Rs 940.03 crore resulted in a net loss of Rs 998.32 crore, which has been presented as profit/loss from discontinued operations,” the company said.
Out of this net loss, M&M said Rs 563.84 crore is attributable to the company. On a standalone basis, M&M registered 90 per cent year-on-year decline in PAT at Rs 30.93 crore. Based on the management judgement and best estimated assumptions of the realisation of the realisable value of the assets relating to SYMC, the company said it had recognised an impairment of Rs 1,210.48 crore in the standalone financial results.
M&Malso said it may not be able to complete the majority stake sale in its South Korean unit SYMC by 28 February as planned earlier. M&M’s consolidated revenue from operations stood at Rs 21,625.95 crore during the quarter while its standalone revenues from operations were at Rs 14,215.90 crore.
M&M said its main concerns during the quarter were supply issues, especially the shortage of semiconductors impacted the availability of ECUs, due to a high dependence on one supplier. Also, there was a steep increase in commodity prices, partially offset by a sales prices increase and value engineering actions, it added. On the outlook, the company said for the auto sector, with key indicators showing positive momentum, the year 2021 has started with strong momentum.