Mahindra CIE Jan-Mar PAT down 86.47 pc to Rs 20.79 cr

Auto components maker Mahindra CIE Ltd on Thursday reported a 86.47 per cent decline in consolidated profit after tax at Rs 20.79 crore in the first quarter ended March 31, 2020.

The company had posted a consolidated profit after tax of Rs 153.72 crore in the corresponding quarter of previous fiscal, Mahindra CIE said in a regulatory filing.

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, said the company, which follows January-December financial year.

The company said its revenue from Indian operations during the period under review stood at Rs 795.17 crore as compared with 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.

Sales dropped due to negative market evolution and additionally because of COVID-19 impact, as a result of which drop in volumes in Italy in the first quarter was internally estimated to be an extra 20 per cent over and above the market drop, it said.

In Germany and Spain, the virus impact was internally estimated to be about 10 per cent on volumes, it added.

Plants in India were shut from March 23, 2020 due to the fight against COVID-19 pandemic in accordance with directions from the state governments where they are located, it said.

Similarly, Metalcastello (Italy) was also closed from March 23 as per orders of the Italian government.

Other plants in Europe were also closed during the last week of March to adapt to reduced customer demand, it added.