Mahindra CIE hits 5% lower circuit as March quarter profit slips over 86%

Shares of Mahindra CIE Automotive hit a 5 per cent lower circuit limit of Rs 77.65 apiece on the BSE on Friday, a day after the company reported a 86.47 per cent decline in consolidated net profit or profit after tax (PAT) at Rs 20.79 crore for the quarter ended March 31, 2020.

The auto components maker had posted a consolidated profit after tax of Rs 153.72 crore in the corresponding quarter of previous fiscal.
 

Consolidated revenue from operations in the first quarter stood at Rs 1,662.7 crore as compared with 2,174.39 crore in the year-ago period. 

As regards Covid-19, the company said that the pandemic has been the toughest situation in years as there is a problem on both supply and demand side as customers can't buy, and manufactures can't make and it will take time to recover. 

The company further said that April sales will be close to zero in all regions and even May and June look uncertain. Recovery could be expected in Q3 however there is a possibility of virus recurring down the line. 

The company's revenue from Indian operations during the period under review stood at Rs 795.17 crore as compared to Rs 852.41 crore in the corresponding quarter of previous fiscal.

Europe revenue stood at Rs 880.78 crore as against Rs 1,332.48 crore in the first quarter a year ago, it added.

Mahindra CIE further stated that the company is secured from a financial point of view. "MCIE has a solid debt position, enough headroom to pay debt and raise debt if required. MCIE’s Cash position is secure and it has unused working capital limits to be comfortable even if current lockdown is further extended," The company said in its press release.

At 09:50 am, Mahindra CIE stock was trading 2.69 per cent lower at Rs 79.50 apiece on the BSE. In comparison, the benchmark S&P BSE Sensex was down over a per cent at 31,500 levels.