June 3, 2020 / 4:33 AM / 2 months ago

BRIEF-Mahindra Says Lockdown Caused Loss of 87k Vehicles, 30k Tractors in Sales in June-Qtr

June 3 (Reuters) - Mahindra and Mahindra Ltd:

* ESTIMATED QUANTUM OF LOSS DUE TO COVID19 LOCKDOWN FOR Q1 F21 IS AROUND 87,000 VEHICLES AND AROUND 30,000 TRACTORS

* ESTIMATED QUANTUM OF LOSS DUE TO COVID19 LOCKDOWN FOR MARCH 2020 IS AROUND 23,400 VEHICLES & 14,700 TRACTORS

* EXPECTS TO MITIGATE COVID HIT BY REDUCING VARIABLE AND FIXED COSTS AND AFTER ABSORBING ALL IDLE OVERHEADS CAUSED BY LOCKDOWN

* PRODUCTION AT VENDORS END IS RESUMING GRADUALLY; ALMOST 100% OF SUPPLIERS NOW OPERATIONAL

* SUPPLIERS FACING CHALLENGES IN TERMS OF WORKING CAPITAL, MANPOWER, LIMITED WORKING HOURS

* EXPECTS QUICKER RECOVERY IN RURAL INDIA FOR AUTO SECTOR COMPARED WITH URBAN SEGMENT

* EXPECT TRACTOR DEMAND TO SHOW ‘GOOD IMPROVEMENT’ IN SHORT-TERM DUE TO RECORD RABI CROP, OTHER FACTORS

* IMPACT OF COVID-19 IS NOT COVERED UNDER INSURANCE Source text for Eikon: [bit.ly/2U8mi5I] Further company coverage:

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