Petrol Stop - M&M posts Q3 profit at Rs 414 crore

M&M posts Q3 profit at Rs 414 crore

Monday, 25 January 2010

26 Jan 2010;dailypioneer.com:New Delhi:Mahindra & Mahindra on Monday reported a massive surge in its profit at Rs 413.70 crore for the third quarter compared to 3.60 crore for the same period last fiscal on the back of a healthy growth in both automotive and farm equipment segments. “While the lower base for the third quarter last year has an impact on profits...The financial results of the company for the quarter are nevertheless outstanding largely due to a strong sales performance by both Automotive and Farm Equipment sectors,” said a statement from Mahindra & Mahindra. The company’s total income for the quarter ended December 31, 2009, stood at Rs 4,521.47 crore, while the same was at Rs 2,929.54 crore in the year-ago period. M&M said it has incorporated the figures of the company’s erstwhile subsidiary Punjab Tractors Ltd (PTL) which was merged with the company. “Since the results for the previous year’s nine months period ended December 31, 2008, include the PTL results only from August 2008 to December 2008, they are not comparable,” the company said. M&M’s automotive segment’s revenue was at Rs 2,556.81 crore during the third quarter, while it was Rs 1,370.22 crore during the same period last fiscal. Its farm equipment segment reported a third quarter revenue of Rs 1,928.18 crore. It was Rs 1,501.79 crore during the year-ago period. “The Government’s stimulus package and easy availability of retail consumer finance continued to be conducive for good sales,” M&M said, adding that low commodity prices compared with previous year also helped matters. The company reported a sale of 50,602 units of utility vehicles (UVs) during the October-December quarter. Last year in the same period 29,184 units were sold. The main volume growth drivers were Xylo, the new refreshed version of Scorpio and the Bolero. M&M said its volume growth in the pick-up segment has grown during the quarter. In the farm equipment segment, domestic tractor sales under the Mahindra and Swaraj brands were at 41,074 units. In the Q3 of last fiscal, the company had sold 29,754 units. The company board had approved sub-division of shares in 1:2 ratio, which means a share with Rs 10 face value will be divided into two shares of Rs 5 each, it said.